A member of the Parliamentary Committee on Finance, Dr. Mark Asibey Yeboah says the Ghana Revenue Authority (GRA) is in breach of the law by issuing directives to financial institutions to put a hold on the tax on interest earnings.
The Ghana Revenue Authority (GRA) this week directed all financial institutions to suspend the imposition of the 1% withholding tax on interest earned by individuals.
GRA in a statement Wednesday, January, 13 said a proposal has been forwarded to parliament by government for the reversal of the tax, hence financial institutions must stop charging the tax.
But Dr. Asibey said GRA’s move is questionable, adding that it is only the law-making body of a national government that has the power to enact, amend and repeal public policy.
“Where does the GRA derive those powers in the law to reverse this act? ….It is an affront to the Presidency and parliament as well. Once it is a law let it act as so; I’m opposed to the law because it is a disincentive to savings, but until it is repealed, the right thing must be done,” he stated in an interview with Accra-based Citi FM.
According to the New Juaben South lawmaker, it was sheer sycophancy for the President to backtrack a policy he’s assented to after 13 days into the year when the tax has been in force.
Meanwhile, Dr. Mark Assibey Yeboah has dismissed claims by the Finance Ministry on a proposal for a reversal of the tax on interest earnings.
The Minister of Finance, Seth Tekper had earlier in a statement indicated that a proposal has been sent to Parliament to reverse the one percent tax imposed on interests.
But Dr. Asibey Yeboah in denial of the comments by the Finance Minister stated that no information has been laid before Parliament since the passage of the law late last year.
