Mahama gov’t accepts proposal to tax President’s salary and allowances

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President John Mahama

Dr Dominic Ayine, the Attorney-General and Minister for Justice, has announced that the Mahama government has accepted the Constitutional Review Committee’s recommendation to require the President to pay taxes on salary and allowances while in office.

According to Dr Ayine, the government agrees that the President should not enjoy tax exemptions solely by virtue of holding office.

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Dr Ayine also disclosed that the government has rejected the committee’s proposal to tax the President’s retirement gratuity and pension.

Addressing journalists on Thursday, July 30, Dr Ayine stated, “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”.

“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.

Also, Dr Dominic Ayine has announced that the Mahama government has accepted a key recommendation of the Constitutional Review Committee (CRC) to extend the tenure of the President and Parliament from four years to five years.

Presenting the government’s White Paper on the Constitutional Review Committee’s recommendations, Dr Ayine stated, “The government has accepted a recommendation to extend the term of office of the president from four years to five years, with the term of Parliament extended to correspond with this”.

“Our thinking is practical. Under the current four-year cycle, the early months of every administration are consumed by transition matters, and the final year is largely consumed by elections.”

“A five-year term provides a more realistic time frame for the formulation, implementation and assessment of government policy.”

Although the Constitutional Review Committee proposed reducing the eligibility age from the current 40 years to 30 years, the Mahama administration has opted for a minimum age of 35 years.

“Still under the presidency, the committee recommended that the minimum age of eligibility for election as president be reduced from 40 years, currently in the Constitution, to 30 years. The government has accepted this recommendation in principle, subject to one modification,” he said.

“The minimum age will be 35 years, not 30 years. And of course, the details of this will be fashioned out by the Constitutional Review.”

It will be recalled that the Constitution Review Committee has recommended a one-year extension of Ghana’s presidential term.

The Committee proposed that Ghana’s presidential term be moved from the current four-year tenure to a five-year term to enable governments more time to govern.

Professor Henry Kwasi Prempeh, the Chairman of the Committee, presented the Committee’s report to President John Mahama on Monday, December 22, and made this known.

According to the Chair of the committee, they were persuaded by submissions from several eminent persons, including former president.

He revealed that they argued that the four years is insufficient for meaningful governance, adding that the committee has noted the global standard for presidential tenure is five years.

They cited concern that the President spends about six months settling into office and nearly a year campaigning, noting that a portion of a four-year term is lost to administrative transition and election year.

Prof. Prempeh explained, “The claim was that the President spends about six months settling into office and nearly a year campaigning”.

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