Mr. Ken Ofori-Atta, Minister of Finance says government will amend the additional personal income tax band introduced in the mid-year budget to cover monthly income above GH¢20,000.00 at a rate of 30 percent instead of the earlier GH¢10,000.00 at a rate of 35 percent.
Speaking during the presentation of the 2019 budget in Parliament on Thursday, he said the proposed review, which will be brought before Parliament for legislation, reflected concerns and feedback received from the public following the announcement of the tax measure in the mid-year budget review.
Concerns raised following this announcement included notably, one from the Trades Union Congress (TUC), which criticized the tax as being too high.
“We have listened to the feedback from the public and come to the conclusion that some relief from this tax measure is justified,” he said.
Per this new proposal, anyone earning monthly incomes of GH¢20,000.00 and above will be required to pay the 30 per cent personal income tax on their incomes. A person earning exactly GH¢20,000.00 for instance, will pay personal income tax of GH¢6000.00.
Mr. Ofori-Atta noted however, that in line with government’s commitment to lighten the tax burden on wage earners at the lower levels of the wage ladder, no income tax will be charged on minimum wage, although recent increases have led to wages around minimum wage levels becoming partly taxable.
Source: The Publisher
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Don't mislead the public if you don't know how the PAYE tax is calculated.
It's only non-residents (as defined by law) who are taxed flat and not graduated.
Personal income tax (PAYE),is tax on a graduated basis as per the first schedule of tax law. First bracket is free, 2nd bracket is 5% and so on till 25% bracket. It is the excess beyond the 25% that will be tax the 30% and not all the income.
Publisher who told you 30% tax bracket means if you earn 20000 you pay 30% of it and so 6000. Stop misleading the people. The 30% applies to incomes above 20000. Below 20000, the old tax brackets apply.