Parliament passes income tax amendment bill

Parliament has passed the Income Tax Amendment Bill 2016. The bill amended the Income Tax Act passed by the House in December last year. 

With the passage, the Ghana Revenue Authority now has the mandate to legally stop the collection of the 1% income tax on interest on investments such as treasury bill, fixed income deposit, interest from banks among others by individuals. 

The new Act also reduces the withholding tax on service fees from 15% to 7.5%.  Government suspended the implementation of the law following public agitation. 

Moving the motion for the approval of the Amendments; the Chairman of the Finance Committee, James Avedzi presented the report of the Finance Committee on the bill and said the amendment is to encourage savings and investment among Ghanaians.

The Ranking Member on the Finance Committee, Dr. Anthony Akoto Osei, said it is good that government has backtracked on the earlier decision to impose the tax.

The Amendment also saw the reduction of the withholding tax on service fees from 15% to 7.5%.

GBC