The Ghana Education Service has said that the Controller and Accountant General’s Department (CAGD) has reversed the tax deducted from the Continuous Professional Development (CPD) Allowance paid teachers in November 2020.
The Director-General of the GES, Prof Kwesi Opoku Amankwa said this in an interview on United Television on Thursday, November 26, 2020.
The payment of the Allowance, which has been postponed from August till November 2020 has been finally paid but not without controversies.
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Taxation
The allowance has been taxed, which was against the agreement between the Unions and the Government of Ghana. This development has brought agitations among the teaching fraternity.
P. A. goes like this
P. A= 1,200
NTC= 100
Some (Withholding) tax= 20% of 1,200
:: 20÷100×1,200= 240
P. A.= 1,200-(NTC 100 +Withholding tax 240)
P. A.= 1,200-(100+240)
= 1,200-340
= 860
:: P. A.= Ghc860
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Technical Hitches
According to the Director-General, the issue of some teachers not receiving their CPD Allowances was due to some technical hitches experienced by the Controller and Accountant General’s Department (CAGD).
Prof Amankwa assue=red the affected teachers of a possible payment of their allowances.
GES Earlier Assurance
The Ghana Education Service(GES) earlier called on the Fair Wages and Salaries Commission (FWSC) to call on the Ministry of Finance to liaise with the Controller and Accountant General’s Department (CAGD) to restore the taxation element in the paid Teachers’ Continous Professional Development (CPD) Allowances.
The GES in a letter dated November 19, 2020, signed by the Director-General of the GES, Prof Opoku Amankwa to the FWSC indicated that the decision to tax the CPD was contrary to their negotiations with the Teacher Unions.
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