Income tax increment has affected us badly - MP

Members of Parliament have lamented reduction in their salaries. The deputy minority chief whip and MP for Banda, Ahmed Ibrahim, has lambasted the finance minister, Ken Ofori-Atta for causing the heat members of Parliament are going through now.

The MP who was disturbed said the situation has caused a lot of MPs to take contract loans and it has become difficult for them to pay.

As part of measures to raise more revenue to meet its revenue target for the 2018 fiscal year, government introduced a new tax known as the high net worth income tax.

In line with the new tax, the government will charge 35 percent on incomes that are over GHC 10,000.

Presenting the 2018 mid-year budget review on the floor of parliament, July 19, 2018, the Finance Minister, Ken Ofori-Atta announced that a new band rate needs to be added to Ghana’s current five band graduated income tax rate for individuals. Government reclassified workers considered high-income earners.

But the MP says they have been badly affected. He was also worried that their common fund and getfund hasn't been released, a situation he stated has forced MPs to use their salaries for other constituency engagements.

Due to this, MPs cannot buy fuel for parliamentary proceedings these days and this has affected parliamentary proceedings the legislator said. MPs are not happy about this, he added.

He again called on the government to disburse the district assembly common funds to various districts to ease the work of MPs else if this continue, the November budget will be rejected by us, he warned.

According to him, about 70 MPs could not be in Accra for the emergency sitting and due to that, the sitting had to be extended.

He said, in an emergency sitting, approvals cannot be made in the house if members present, are not up to 138 out of 275 according to the standing orders of Parliament.