The Government has accepted the principle that the President should no longer enjoy tax exemptions solely by virtue of holding office, as part of proposed constitutional reforms.
Under the proposal, the President will be required to pay tax on his or her salary and allowances, as well as applicable indirect taxes on goods and services.
The Attorney-General at a press conference on Thursday, July 30 explained that the move is intended to promote fairness and strengthen public confidence in the country’s tax system by ensuring that the Head of State is subject to the same tax obligations as other citizens in respect of earnings and consumption.
However, the government has rejected a recommendation to tax the President’s retirement gratuity and pension.
“The Government has not, however, accepted the proposal to tax the President’s retirement gratuity and pension.”
According to the Attorney-General, those retirement benefits will remain exempt.
He said the specific details of the President’s tax obligations will be addressed through Ghana’s tax laws.
The proposal forms part of a broader constitutional reforms aimed at improving governance, accountability and public sector administration.
The Government also accepted the recommendation of the Constitutional Review Committee to extend the presidential term from 4 to 5 years.
He said that the minimum eligible age to contest for president was reduced to 35 from 40.
“For the avoidance of doubt, this proposed amendment does not apply to the incumbent President,” he said.
The Constitutional Review Committee had proposed a five-year presidential term in Ghana. The committee noted that the current four-year term was too short.
It also said it did not find a place for a third term for a sitting president during its work.
