Audio By Carbonatix
The government has accepted a proposal requiring the President to pay tax on earnings received while in office, marking a departure from the long-standing practice under which the office has enjoyed tax exemptions.
Attorney General and Minister for Justice Dominic Ayine announced the decision while presenting the government's response to the Constitution Review Committee's report at the Jubilee House on Thursday, July 30.
According to Mr Ayine, the government has endorsed the principle that the President should not be exempted from taxation solely because of the office he or she occupies. Under the proposed changes, the President will be liable to pay tax on salary, allowances and applicable indirect taxes.
"The government has also accepted the principle that the president should not enjoy tax exemptions by virtue of office alone.
"The president will pay taxes on his salary and allowances, as well as the applicable indirect taxes on goods and services," he stated.
The Attorney General, however, said the government had declined to extend the tax obligation to the retirement benefits of a former President.
"The government has not, however, accepted the proposal to tax the president's retirement, gratuity, and pension."
He added that the specific scope of the President's tax obligations would be addressed through tax legislation rather than being detailed in the Constitution.
"The details of the president's tax liability will be worked out in the tax laws where such details belong."
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