Parliament Approves GHS 174.69 Million Personal Emoluments Waiver For Health Workers

Parliament on Friday approved GHS 174.69 million waiver of income tax on personal emoluments of Health Workers and on additional allowances paid to Frontline Health Personnel for the months of July to September 2020.

The waiver was requested by the Finance Committee of Parliament in line with national measures outlined for combating the COVID-19 pandemic.

Dr Assibey- Yeboah, Chairman, Finance Committee of Parliament, presenting the Committee’s report to the plenary, recalled that as part of measures to support frontline personnel in tackling the Covid-19 pandemic, the Government of Ghana decided that all health workers would not pay taxes on their emoluments for a three-month period, commencing April 2020.

Also, all frontline health workers would also receive an additional allowance of 50 per cent of their basic salary per month tax free for the period March to June, 2020.

“To support health workers in the continued fight against the Covid-19 pandemic, Government has decided to extend these incentives granted to health workers to cover the months of July, August and September 2020,” the report said.

According to the report, the total amount of Income Taxes for which the waiver is being sought is GHS174.69, broken down as Personal Emoluments of GHS 168.98 million and GHS 5.71 million for Additional Allowances.

Dr Assibey-Yeboah noted the high risk of Covid-19 infection among doctors, nurses and others on the front lines leading to death in some cases.

Additionally, the report noted the considerable mental stress of health workers as a result of the sorrow they felt when patients succumbed to the virus.

“They too have families, and will naturally be fearful that the virus might reach those they love most.

“The above factors, together with the added pressure of workplaces a lot of strain on health workers who overcome their own fears to put themselves on the line daily to treat the sick and to combat the pandemic,” the report said.

The tax incentive, according to the report, was designed as a token compensation to encourage healthcare workers, especially frontline health personnel to continue to make sacrifices in caring for those infected with the virus and caring for the sick in general during the difficult times.

The House learnt that the requested tax incentives covered health workers in the frontline health facilities, quasi government health facilities, quasi-government health facilities and private health facilities.

There was however a challenge in defining who a “frontline health worker” was.

However, in collaboration with relevant agencies, a working definition of “Frontline Health Workers” was accepted, and it included people working in the most critical and risky areas in the fight against the Covid-19 pandemic.

According to the report, the number of health workers who fell into the “frontline category for the months of April, May and June 2020 were 6091, 7418 and 7196 respectively, with corresponding expenditure on Additional Allowances being GHC 6.5 million for the months of April, May and June 2020 respectively.

Mr Benjamin Kpodo, MP for Ho Central, seconding the motion, called for an expansion of the definition of frontline health workers to include all people who put their lives on the line in caring, in all aspects and transportation of people infected with the virus even though they may not be medical staff.