The Chartered Institute of Taxation is impressing on the Ghana Revenue Authority to scrap the gift tax component of the new Income Tax Law.
It argues taxpayers will be overburdened following the decision to include gift taxes to personal income tax to be paid, under the new tax law.
Prior to the amendment, gift taxes were considered independent as a gift which valued more than fifty Ghana cedis attracted a 15 percent tax.
Speaking to Citi Business, the President of the Chartered Institute of Taxation, Mike Afflu also maintained the lack of implementation of the gift tax makes it necessary to be abolished.
“Looking at the effect that it will have, if it (gift tax) is added to either business income or revenue income, it will be best either it is left on its own or it is abolished, because gift tax over the years has been difficult to implement anyway.
“At least research has shown that if we even get it out of our tax system, it will be better, so I will recommend that the gift tax is abolished,” Mr. Afflu stated.
Source: citifmonline