Mahama warns Akufo-Addo over 'suicidal' attempt to tax churches

Mahama warns Akufo-Addo over 'suicidal' attempt to tax churches

- John Mahama has argued against taxing churches

- The former president says any move by the government to tax church is suicidal

- The GRA has expressed interest in chasing after churches that fail to pay taxes

The former president, John Dramani Mahama has warned the government against any move to tax churches.

John Dramani Mahama described any move by President Akufo-Addo to introduce taxes to the church as "suicidal".

Speaking to Adom FM at the synod of the Global Evangelical church at the University of Ghana, the former president suggested that the Christian Council must rather be given the chance to deal with developments in the clergy.

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The argument by John Dramani Mahama follows a contrary one by President Akufo-Addo where he warned that the flamboyant lifestyles of churches must attract taxation. compiled sections of Nana Addo's presentation which also saw the president calling for churches to be very decent in spending.

So far, the Ghana Revenue Authority (GRA) has hinted of investigating churches that rake in much revenue that is subsequently not taxed.

The commissioner general stated that it will pay informants 25 percent of a penalty against the churches that are hiding under a fellowship to make money without paying taxes to the state.

The GRA is currently tightening its tax-collection loopholes as part of efforts to meet its 2018 revenue target. Only 1.2 million out of the 30 million population in Ghana are paying taxes.

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Out of the 1.2 million, 1 million are in the formal sector and 200 thousand are in the informal sector. This implies that the contribution of the informal sector to total tax revenue is below 5 percent creating a huge gap in the national revenue generation.

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