Claims by Finance Minister Seth Terkper that proposals have been sent to parliament to reverse the 1% withholding tax on investment is untrue, a Member of Parliament Finance Committee, Dr. Mark Assibey Yeboah, has said.
Read more: Gov’t reverses 1% tax on investment
“On the issue of the imposition of a 1% tax on interest earned by individuals, Government has already submitted proposals to Parliament to reverse the position,” the statement said.
However, Dr. Assibey Yeboah told Accra based Citi FM that “It is absolute falsehood for anybody to suggest that proposals have been sent to Parliament for a reversal of the one percent withholding tax on the interest, it can’t be.”
According to him the law was passed in September 2015, it became an Act assented by the president for it to take effect 1st January, 2016.
Explaining further, he said “This thing (Income Tax Law) came into effect 1st January and the Bill has been passed since September, it became an Act assented by the President September 1st waiting for it to take effect this year. Following a public outcry, the government wants to rescind the decision.”
Following the imposition of the tax, there was huge public outcry over the issue after banks and financial institutions sent SMS alerts to their customers about the provision and how it would affect them.
Dr. Assibey Yeboah further stated, “Parliament has been on recess since December 23rd nothing of that sort has happened, in any effect, the submission to Parliament has to be presented to the full House for it to be presented to members, and nothing of the sort has happened.”