Reacting to the government’s 35 percent salary slashed in an interview with http://www.newslinegh.com, the First Deputy Minority Whip and Member for Banda Constituency Hon. Ahmed Ibrahim, has bemoaned the new tax rate which has caused a slash on MPs salary, blaming the government and Finance Minister Hon. Ken Ofori-Atta for hiding behind taxes to frustrate their work.
According to him, already the Lawmakers are peeved and disappointed in the government for nonpayment of their District Assembly Common Fund, whiles being faced with another insensitive development of over Two Thousand Cedis (2,000) slashed off their monthly salary to worsen their problems by increasing their financial burden.
“Members of Parliament from both sides are unhappy and highly disappointed in the government, and the Finance Minister himself is not finding it easy to show up in Parliament, because he knows he has wronged us.
If the NPP government cannot help us by releasing the Statutory Fund to finance the work at the constituency, they should not deprive us of our hard earned income by imposing unnecessary taxes to complicate our work as Parliamentarian”. Hon. Ahmed lamented.
Presenting the Mid-year budget review to Parliament, the Finance Minister Hon. Ken Ofori-Atta, on Thursday July 19, 2018, announced the new tax which he called ‘High Net Worth Income Tax’, among others.
According to Hon. Ofori-Atta, government reviewed the personal Income Tax categories to include an additional band of Ten Thousand Cedis (GH¢10,000) and above per month, at a rate of 35%.
The High Net Worth Income Tax imposed on salaries from 25% to the rate of 35%, took effect this month and has badly affected the home take of most MPs, especially those who are already being taxed for other loans.
Though Members of Parliament receive over GH¢10,000 as monthly salary, yet are burdened with other responsibilities and seem not to be enough for them to actively discharge their parliamentary duties after this new development.
35 Percent High Net Worth Income Tax; Impact on the Legislation
Ghana’s legislation is expected to witness a huge decline in numbers after the 2020 general elections, as many of its members are likely to opt out of Parliamentary duties due to the frustration and difficulties they are faced with, under this current government.
Members, who once thought the house of law was so to say, “a bed of roses” are left in tatters, after being burdened with problems and demands from constituents, while the government continue to frustrate their lives.
Many feel disappointed and are planning to opt out in the next general elections, especially the new members, after finding out that parliamentary job is not lucrative.