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July 14, 2020

 

Parliament approves GH¢288m tax waiver for health personnel

May 01, 2020

Parliament has approved a GH¢288.6 million tax waiver for healthcare workers to motivate them in the fight against Covid-19.

The tax waiver is on personal emoluments of all healthcare workers for the months of April, May and June 2020, and on additional allowances for front-line health personnel covering March, April, May and June 2020.

It will be recalled the President announced the tax waivers for healthcare personnel last month in one of his Covid-19 addresses.

He also announced front-line health workers will get 50% of their basic salary as an additional allowance, tax-free.

The tax waiver on personal emoluments will cost the nation GH¢237.5 million whilst the tax waiver on additional allowances will amount to GH¢51 million.

A report of the Finance Committee of Parliament said the house expects the waiver to encourage health workers and other frontline personnel to continue to make sacrifices in caring for those infected with the virus.

The committee’s report said the Health Ministry has received the list of private healthcare workers across the country for vetting and inclusion in the tax waiver scheme.

Income tax amendment bill 2020

The house has also approved amendment to the income tax amendment bill 2020 to waive taxes on withdrawals from the third-tier provident funds and personal pension schemes.  

Originally, withdrawals from these funding sources before retirement are subject to 15% income tax if withdrawn before 10 years by contributors in the formal sector and before five years in case of contributors in the informal sector.

In order to provide some relief to employees who have lost their jobs permanently or whose businesses have collapse due to the Covid-19 pandemic, government has decided to exempt such withdrawals from tax deduction.

In other to qualify for the tax waiver, one has to demonstrate to the satisfaction of the National Pensions Regulatory Authority and Labour Commission that his or her unemployment status was as a result of the Covid-19 pandemic.

Minority Spokesperson on Finance Ato Forson called for amendment to the law establishing the Social Security and National Insurance Trust (SSNIT) so employers can withdraw money from it to cushion themselves in light of Covid-19, even before their retirement.

In order to provide relief to employees who have lost their jobs permanently or whose businesses have collapsed due to the Covid-19 pandemic, the government has decided to exempt such withdrawals from tax deduction.

In other to qualify for the tax waiver, one has to demonstrate to the satisfaction of the National Pensions Regulatory Authority and Labour Commission that his or her unemployment status was as a result of the Covid-19 pandemic.

The Minority Spokesperson on Finance called for amendment to the law establishing SSNIT so employers can withdraw money from it to cushion themselves in light of Covid-19, even before their retirement.

The sitting came off on May 1, despite the day being a holiday. Parliament has since adjourned sitting indefinitely.

Source:Adomonline

Last modified on Friday, 01 May 2020 18:23
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