Confirmed: COLA Is Taxed This Time Unlike In 2014 As Accurately Predicted By Educativenewsroom. com [August 2022 Payslip As Evidence Attached]

Confirmed: COLA Is Taxed This Time Unlike In 2014 As Accurately Predicted By Educativenewsroom. com [August 2022 Payslip As Evidence Attached]

Highlights

1. History does not always repeat itself and the same applies to the Cost of Living Allowance (COLA) paid to government workers in Ghana.

2. COLA was not taxed the last time it was paid in the year 2014. However, the first payment of the allowance showed the Cost of Living Allowance is taxed and will continue to be taxed until it expires in December 2022.

3. Though it was predicted by educativenewsroom. com on a very valid basis that the allowance would be taxed, it was received by government workers with contempt.

4. “The reality has dawned on everyone. COLA is finally taxed and will be taxed until December. It is time we value the blog post from educativenewsroom. com even more than the traditional media”, a message from a regular reader of blogs from educativenewsroom. com

5. The 15% Cost of Living Allowance negotiated for government workers on their basic salary is now reduced to 12.375% of basic salary after a 17.5% tax is charged on the 15% COLA by the government.

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6. Below are the three (3) possible reasons COLA was taxed

1. The current state of the economy: the current state of the economy, which is struggling to survive will be looking to accrue tax from any available source just like the E-levy. More pressing about the need to tax the COLA is the fact that the government is giving away the 15% COLA from its coffers, something the government did not plan for at the beginning of the year. It will just be important for the government to take back part of the amount it is giving out as COLA.

2. Reintroduction of toll-both levies: for a government which has agreed to pay workers a 15% COLA to request a reintroduction of a levy it has abolished under eight (8) suggests the government will leave no stone unturned to try taxing the 15% COLA

3. Income tax laws: the income tax laws in the country require every income earned to be subjected to tax rates even if it is a gift. Though the income tax laws were not applied to COLA the last time it was paid in the year 2014, it is highly possible the tax laws will be used as a basis for tax since requesting the IMF bailout, by the government, is largely influenced by not enough revenue for the government.

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