As part of measures to raise more revenue to meet its revenue target for the 2018 fiscal year, government among other things revealed it will introduce a new tax known as the high net worth income tax.
In line with the new tax, government established that it will charge 35 percent on incomes that are over GHC 10,000.
Despite concerns by some stakeholders including the Trades Union Congress, the directive has taken effect, and Members of Parliament whose salaries are currently pegged at eleven thousand Cedis are complaining.
Member of Parliament for Kumbungu, Ras Mubarak, expressed his misgivings about the development, saying “Our MPs are earning GHC 2,000 less than what they previously earned before the coming into effect of the 35% income tax on people who earn more 10,000. MPs are earning more than GHC10,000. The take-home of MPs was a little over GHC 11,000 . With the coming into effect of the 35% new income tax, MPs are earning around 9,000 plus. For many of us that is a huge dip because it is an assault on our disposable income. Imagine what 2,000 can do in a rural constituency…It is an assault and an attack on the middle class and it will impoverish more people. ”
It would be recalled that the Finance Minister also announced a 3.5% tax on importation of luxury vehicles with engine capacities of 3.0 liters and above.
He however did not confirm the percentage to be charged.
In line with the new tax, the government was expected to charge 35 percent on incomes that are over GHC 10,000.