President Mahama has insisted that his administration has no plans of introducing new taxes.
Reacting to media claims that government was planning to introduce new taxes, the president on his twitter handle on Thursday assured Ghanaians that his administration has no plans to undertake such a move.
The disclaimer by the president follows an earlier argument by finance minister Seth Tekper that allowances must be taxed to prevent people from evading taxes.
“Yes allowances must be taxed. Allowances are income. The issue I know is a very difficult one, it’s about taxing income and if you do not define income broadly, you would have tax payers either through avoidance or hiding the income in areas which are not taxed. It’s a thorny one. But remember that as you make your social security contributions, they are exempted from tax even though it is part of your income,” Seth Terkper revealed at a Graphic Business forum.
Meanwhile, vice-presidential candidate of the New Patriotic Party (NPP), Dr. Mahamudu Bawumia says his party will review the Income Tax Act 2015 to abolish taxes on pensions and allowances.