The repeal of the one percent withholding tax on interests is likely to delay as some members of the Finance Committee of Parliament, have hinted of plans to boycott the meeting to review the request by the Finance Ministry.
Finance Minister, Seth Tekper, has laid an amended Income Tax before Parliament seeking a reversal of the one percent withholding tax on interests as well as a reduction in the 15% withholding tax on services by half.
It follows what the Speaker of Parliament, Edward Doe Adjaho described as a breach of law, the decision by the GRA and the Finance ministry to announce a suspension of the taxes.
Speaking to Citi Business News, a Member of Parliament’s Finance committee, Dr. Mark Assibey Yeboah also bemoaned the revenue losses due to the suspension of the tax.
“Following the Speaker’s directive that what the Finance Ministry had done was a violation of the law, we would have expected the Ministry to issue a directive informing the commercial banks on the collection of the tax but that has not been done. So as we speak now the banks are not collecting the tax, government is losing revenues and until such time that the repeal is done, I think the status quo of the non-collection still remains,” he noted.
“I am even planning to boycott the meeting because if government can go ahead and stop its collection, why should I waste time to sit on repealing it; did they need Parliament before going ahead with the stop the collection of the tax? They didn’t so I don’t even think I am attending the meeting,” Dr. Kweku Kwarteng further lamented.
Earlier, sources at the Finance Ministry told Citi Business News of an expected meeting with the Finance Committee of Parliament to consider their proposal as early as possible as they considered the issue as a delicate one.