Deduction Of Tax On End-Of Service Benefit Of Ex-KNUST Staff Is According To Law

The Office of the Registrar of the Kwame Nkrumah University of Science and Technology (KNUST) has responded to accusations that deductions have been made from the end of service benefits of retired staff of the school.

According to a statement signed by Dr. Daniel Norris Bekoe, Deputy Registrar of the University Relations Office, is according to law.

“Management wishes to state that the deduction of 25% tax on end of service benefits for senior members, 17.5% for senior staff and 10% for junior staff follows the new income tax Act. 2015 (Act 896) issued on 6th October 2016 by the Republic of Ghana. Specifically, section 4.6.4 states that, “End of service benefits and ex-gratia paid either in cash or kind is taxable,’ the statement said.It added that this legal requirement has been widely communicated. “This has been communicated extensively to the 2019/2020 retirees and copies of the new income tax Act mad available to the leadership of the group.

“It is also worthy to note that this tax applies to all staff of all public universities in Ghana who qualify for such packages; the deduction is thus not unlawful, or discriminatory.”The statement is coming after some of the affected lecturers reportedly became protestant of the deductions.

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