Government Accepts Tax on President’s Salary but Rejects Tax on Retirement Benefits
The government has accepted a recommendation from the Constitutional Review Committee (CRC) that the President should pay taxes on his salary and allowances while in office, but has rejected a proposal to tax the President’s retirement gratuity and pension.
Attorney-General and Minister for Justice Dr Dominic Ayine announced the government’s position on Thursday, July 30, while presenting the White Paper on the CRC’s recommendations.
Dr Ayine said the government agrees that the President should not be exempt from paying taxes simply because of the office he holds.
“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.
However, he explained that the government has not accepted the 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, and the details of the President’s tax liability will be worked out in the tax laws, where such details belong,” he added.
The decision forms part of the government’s response to recommendations from the Constitutional Review Committee, which was set up to examine aspects of the 1992 Constitution and propose reforms to strengthen governance, accountability and democratic practice.
The committee’s recommendations are expected to guide several constitutional and legislative reforms as the government begins implementing the outcomes of the review process.
Credit to adomonline
