President to Pay Taxes on Salary and Allowances, Retirement Benefits Remain Tax-Free

The government has accepted a key recommendation from the Constitutional Review Committee (CRC) requiring the President to pay taxes on salary and allowances while in office, marking a significant step towards promoting accountability and fairness in public office.

Attorney-General and Minister for Justice, Dr Dominic Ayine, announced the decision on Thursday, July 30, during a briefing on the government’s response to the Constitutional Review Committee’s report.

According to Dr Ayine, the government agrees with the principle that the President should no longer enjoy tax exemptions simply because of the office he occupies.

“The Government has accepted the principle that the President should not enjoy tax exemptions by virtue of office alone. The President will pay tax on salary and allowances, as well as the applicable indirect taxes on goods and services,” he stated.

Retirement Gratuity and Pension Exempt

Despite accepting the recommendation for the President to pay taxes on salary and allowances, the government rejected the proposal to tax the President’s retirement gratuity and pension.

Dr Ayine explained that retirement benefits would remain exempt from taxation, while the specific details of the President’s tax obligations would be outlined in future tax legislation.

“The Government has not, however, accepted the proposal to tax the President’s retirement gratuity and pension, and the details of the President’s tax liability will be worked out in the tax laws, where such details belong,” he added.

Constitutional Reforms Underway

The decision forms part of the government’s broader response to recommendations submitted by the Constitutional Review Committee, which was tasked with reviewing Ghana’s 1992 Constitution and proposing reforms to strengthen governance, transparency and public accountability.

The committee’s recommendations are expected to guide future constitutional amendments and legislative reforms following the nationwide constitutional review process.

The government’s acceptance of the proposal requiring the President to pay taxes on salary and allowances is seen as one of several measures aimed at reinforcing public confidence in leadership and ensuring greater equity in the country’s tax system.