Assembly Members Protest Tax Deductions on GH¢1,300 Allowance Despite Minister’s No-Tax Directive
Assembly members across Ghana have voiced strong concerns over unauthorized tax deductions from their newly introduced GH¢1,300 monthly allowance, despite explicit instructions from the Minister of Local Government, Chieftaincy, and Religious Affairs, Ahmed Ibrahim, that the payments should be non-taxable.
The allowance, part of the government’s “Resetting Ghana Agenda” and funded by a GH¢100 million allocation in the 2025 Budget, began disbursements in July 2025, with GH¢23.6 million released to cover April and May payments for 9,085 assembly members nationwide.
Frank Ackah Nelson, President of the Ghana Association of Assembly Members, revealed in a July 31, 2025, interview with Onua News Nsem Titire that approximately 70% of assembly members are yet to receive their allowances.
He highlighted inconsistencies in tax deductions, with some Metropolitan, Municipal, and District Assemblies (MMDAs) deducting 20% or 10% from the GH¢1,300, while others comply with the minister’s no-tax directive.
This has led some members to reject the payments in protest. Nelson emphasized the minister’s clear stance against deductions, noting the uneven application across assemblies is causing frustration.
The initiative, fulfilling President John Mahama’s 2024 campaign promise, aims to strengthen local governance by equipping assembly members with financial resources to monitor government projects.
However, the tax deduction issue has sparked calls for the Ministry of Local Government to enforce uniform compliance among MMDAs to ensure the full GH¢1,300 is paid without deductions, as intended.
