Government approves taxation of President’s salary and allowances but rejects tax on retirement benefits

The government has accepted a recommendation by the Constitutional Review Committee (CRC) for the President to pay taxes on his salary and allowances while in office, but has rejected a proposal to tax presidential retirement gratuity and pension.

Attorney-General and Minister for Justice, Dr Dominic Ayine, announced the decision on Thursday, July 30, while presenting the government’s White Paper on the CRC’s recommendations.

Dr Ayine said the government agreed with the principle that occupying the highest office in the land should not automatically exempt the President from tax obligations.

“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,” Dr Ayine said.

However, he explained that the government did not support the recommendation to extend taxation to the President’s retirement benefits.

“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 a broader set of governance reforms proposed by the Constitutional Review Committee, aimed at promoting accountability, transparency and fairness within Ghana’s constitutional framework.

The CRC recommendations are expected to guide future constitutional and legislative amendments following the completion of the national review process.