Parliament approves GH¢174m tax-free income for front line health workers

Fri, 14 Aug 2020 Source: www.ghanaweb.com

Parliament has voted to approve a tax waiver of GH¢174 million on the income taxes of front line health workers.

The move by Parliament is consistent with President Nana Addo Dankwa Akufo-Addo’s promise a few months ago to motivate the health workers in the fight against the novel coronavirus.

The Presdient at the time: "An insurance package, with an assured sum of GH¢350,000 for each health personnel and allied professional at the forefront of the fight, has been put in place, with a daily allowance of GH¢150 being paid to contact tracers.

"Government has also decided that all health workers will not pay taxes on their emoluments for the next three months, i.e. April, May and June. Furthermore, all frontline health workers will receive an additional allowance of 50% of their basic salary per month, i.e. for March, April, May and June. The March allowance will be paid alongside that of April."

The tax incentive was designed by the government as a token compensation to encourage healthcare workers, especially frontline health personnel to continue to make sacrifices in caring for those infected with the coronavirus.

According to the Finance Committee of Parliament, the number of health workers who fall within the "frontline health workers" category for the months of April, May and June, 2020 is 6,091, 7,418, and 7,196 respectively.

There is also a corresponding expenditure on the additional allowances of GH¢6.5 million, GH¢7.5 million and GH¢7.6 million for April, May and June 2020, respectively.

Presenting the Finance Committee report, Chairman, Dr Mark Assibey-Yeboah, said personal emoluments are estimated at GH¢168 million and additional allowances at ¢5 million cedis.

Source: www.ghanaweb.com
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