COVID-19: Parliament exempts 2 groups of Tier 3 fund contributors from tax payments
- Some Tier 3 contributors would be exempted from paying tax due to the effects of the coronavirus
- Provident funds and personal pension scheme contributors would enjoy relief following reports of loss of jobs and capital
- The total amount, in fiscal terms, has been estimated to be GHC639 million if all funds are withdrawn
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Parliament has exempted withdrawals from third-tier provident funds and personal pension schemes from tax.
Information available shows that this followed an amendment of the Income Tax (Amendment) Act 2015.
YEN.com.gh understands that the move is designed to cushion contributors who have lost their jobs or capital as a result of the coronavirus.
READ ALSO: Parliament approves GHC1.2 billion for Coronavirus Alleviation Programme
Per a report by citibusinessnews.com, in fiscal terms, the Amendment would be equivalent to GHC639 million if all funds are withdrawn.
Ghana’s Pensions Act of 2008 has established a three-tier pension scheme consisting of three levels of contributions.
These are namely Tier 1, which is a mandatory basic national social security scheme, Tier 2 is a mandatory occupational pension scheme that is fully funded and privately managed, while Tier 3 is a voluntary provident fund and personal pension scheme, which is also fully funded and privately managed.
Parliament has also approved a request to waive taxes on personal emoluments of health workers for April, May and June, and additional allowance for frontline health personnel for March, April, May and June of 2020.
Meanwhile, the Ghana Revenue Authority (GRA) has sent a strong word of caution to Ghanaians to ensure they constantly honour tax obligations.
GRA's Commissioner-General, Ammishaddai Owusu-Amoah, noted that measures have been put in place to ensure Ghanaians file tax returns without challenges.
He explained that the outbreak of the coronavirus should not serve as an excuse to refuse to pay taxes.
READ ALSO: SONA 2020: Akufo-Addo addresses Parliament
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Source: YEN.com.gh
