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Ghana Tax Law NPA criticizes gov’t over decision to tax pension benefits

Speaking at a Stanbic Bank-Daily Graphic Executive Breakfast Meeting Tuesday, Seth Terkper noted that pensions are income too hence must be taxed.

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A member of the National Pensions Association (NPA) Benjamin Assumang has called a decision by the Finance Ministry to tax 15 percent of pension investments as “unfair.”

According to him, this will stifle the lives of pensioners.

Speaking at a Stanbic Bank-Daily Graphic Executive Breakfast Meeting Tuesday, Seth Terkper noted that pensions are income too hence must be taxed.

Making an analogy, Terkper said: “What is the difference between two chief Executives? One with a salary of a 1000 and allowances of 5000, totaling 6000 and the second executive with allowances of a 1000 and salary of 5000, if we were to exclude allowances one would go away with 5000 even though the total remuneration is 6000 for all of them”.

But Assumang, who is also a board member of the National Pensions Regulatory Authority (NPRA), said taxing pensions will be unfair because the little they earn keeps corroding as a result of rising inflation.

“That will be very unfair because in the first place, our pension keep running down, he said on Joy FM’s Midday news. “It keeps corroding as a result of inflation.”

Assumang said both the NPA and NPRA were not consulted in the decision to tax 15 percent of the pension.

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