Former Member of Parliament(MP) for Kumbungu Constituency, Ras Mubarak has asked men in Ghana 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 a 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 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 ‘EpaHoa Daben’ political talk show.