The Trades Union Congress (TUC) has commended the government for reviewing the 35% tax on incomes in excess of GHS10,000.
The Government of Ghana in it 2019 budget reviewed the 35% Personal Income Tax Band imposed on the citizens who earn GHS10, 000.
Finance Minister, Ken Ofori Atta said after they introduced the 35% Personal Income Tax Band in July, “We have listened to the feedback from the public and come to the conclusion that some relief from this tax measure is justified.
Accordingly, the Government proposes to review this band to impact monthly income above GH¢20, 000 at a rate of 30percent.”
This means Ghanaian citizens who earn GHS 20,000 and above will be required to pay 30% Personal Income Tax. Thus if you earn GHS 20,000 will be expected by pay 30% which is GHS 6000 as Personal Income Tax.
“In our comment on the mid-year budget review, we described the tax as “too high” and urged government to reconsider it. We are happy to note that government has responded positively to our plea.
“We are aware of the growing shortfalls in tax revenues and the increasing demands on government to provide both economic and social infrastructure and services. The Minister announced that government has completed a draft policy on tax exemptions which will be presented to Parliament in 2019,” TUC said in a statement on the 2019 budget presented to Parliament on Thursday.
The labour organisation has also urged government to review all tax exemptions and scrap those that are not benefiting the country.
