Pensions will not be taxed - Finance Ministry

Betty

June 2, 2016 9:18 AM

Finance Ministry in a statement said Seth Terkper never said pensions are going to be taxed

The Ministry of Finance in a statement has said Minister Seth Terkper never said pensions will be taxed.

The new tax Act 896, 2015, which has sparked major debates with many accusing government of over taxing Ghanaians is an unconventional means to raise more revenue.

Addressing a gathering at the Stanbic Bank-Daily Graphic Executive Breakfast Meeting Seth Terkper was quoted as saying the "new tax law and it implications the finance minister said "t’s a thorny one because you are exiting. But remember that as you make your social security contributions, they are exempt from tax even though it is part of your income.\

Perhaps we will have to exempt a certain level of income on the pension so that those who are fortunate enough to make fat pensions they may pay a little tax,” Terkper said.

But a statement from the ministry said government does not intend to tax the pensions of Ghanaians.

The statement also said the minster's speech at the Stanbic Bank -Daily graphic breakfast meeting was misconstrued.

It said Terkper only sought to "explain the philosophy of the taxation of pensions adopted generally in literature and in countries that tax pensions."

Meanwhile President Mahama's twitter account tweeted that government will not introduce new taxes.

Betty