The Ghana Revenue Authority to tax clothing allowance of bankers

The Ghana Revenue Authority will begin charging taxes on the clothing allowances of members of the Ghana Banking Association.

Banking hall

This will be effective in January 2020.

A letter addressed to the Executive Secretary of the Ghana Banking Association reminded him of a meeting that was held to that effect.

The letter which was dated December 17, 2019, was signed by the Acting Commissioner-General of the GRA, Ammishaddai Owusu-Amoah.

The meeting he referred to was also held on the same day the letter was written at the Office of the Commissioner-General to that effect.


The letter said “As was discussed in relation to taxation of Clothing Allowance paid by members” of the Ghana Banking Association, the GRA wishes to “reiterate our position that clothing allowance, unless it is reimbursable, is a taxable allowance.”

“However, in view of the misunderstanding surrounding the ruling that was giving to UNICOF and the interpretation by members of your association, the following were agreed, that as was agreed in earlier discussion, your members should start charging tax on clothing allowance with effect from January 2019” and that “all issues relating to the above subject before 1 January 2019 that were outstanding as of today are deemed closed,” the letter added.

The GRA added: “By copy of this letter, Deputy Commissioner LTO is to ensure that this agreement is implemented.”

The GRA has failed to meet its revenue target for the past three years. Tax experts have often suggested that the government must widen the tax net instead of burdening the same people with taxes.


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