The 1% Withholding tax law, which was approved by Parliament was withdrawn after it received intense criticisms from the public.
The Ministry of Finance had in a statement announced the withdrawal of the 1% withholding tax on all earnings of investment accounts, saying that “On the issue of the imposition of a 1% tax on interest earned by individuals, Government has already submitted proposals to Parliament to reverse the position.”
Notwithstanding the withdrawal of the tax, some MPs including a Ranking Member on Parliament’s Finance Committee, Dr Anthony Akoto Osei, threatened to cite the Ghana Revenue Authority (GRA) for contempt of Parliament for unilaterally withdrawing the 1% withholding tax on investment earnings, without recourse to the House which approved it at the first place.
The Speaker of parliament who gave a ruling on the matter, indicated that “If it is true that they have put a notice in a newspaper suspending an Act, which is on the statute books, then it is not proper.”
He said, “the proper thing to do is to take steps to amend it and.…….until it’s amended the legal position is that that is the law as at now”, expressing disaffection at the manner the GRA rushed to withdraw the tax without paying any respect to the authority that had already given the law meaning.