By: Fred Yaw Sarpong
Ministry of Finance has stated that the government has not introduced any new tax for casual or temporary workers in the country, especially for those working in oil and gas, mining and other companies.
According to the Ministry, the 5% tax which casual and temporary workers are require to pay is not a new tax but it’s rather an existing tax.
The Ministry said under the repealed tax Act (2000), Act 592 wages of casual and temporary workers, especially for those in oil and gas, mining and other companies are required to pay 5% tax.
A statement from the Ministry said the current 5% tax replaced the existing 15% or 7.5% casual or temporary tax.
“For the avoidance of doubt, the 5% in the Regulation L.I 2244 is therefore a reduction in rate and not a new tax on casual and temporary employees,” the statement said.
The Ministry issued the statement to settles the anxiety that some sections of the public have expressed concerning the implementation of the 5% tax for casual labour.
The Ministry said there was agitation from the public especially casual workers or temporary in oil and gas, mining and other companies thinking that a new tax has been introduced.