Former Member of Parliament (MP) for the Kumbungu Constituency, Ras Mubarak, has championed the need for Ghanaian men to respect the law on gift tax.
The tax payable on gifts as defined under section 4(2vii) and 5(2vi) of Act 896, 2015 is at a graduated rate that is added to the person’s income from employment or business for the year of assessment. The tax payable on gift from investment is 25% for a resident Ghanaian and 30% for a non-resident Ghanaian.
“There is a law in Ghana which says when you buy or gift someone anything above GHc200.00 you need to pay tax on it. Men who buy the iPhones worth thousands of cedis need to pay the taxes on these gifts. Although the Ghana Revenue Authority (GRA) is not effective in collecting gift taxes, we should pay them,” he told Happy98.9FM’s Don Kwabena Prah on the ‘Epa Hoa Daben’ political talk show.
With Ghanaians seeking comfortable lives just like enjoyed in Europe and the America’s, Ras Mubarak urged all men to follow his lead by paying taxes on all gifts given to others.
According to the outspoken politician, the government should also set an example by passing an unexplained wealth bill. With this bill, pastors, politicians, media personalities and public figures must be investigated for any and all unexplained wealth.
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