Government has directed Local Government Authorities to levy income tax on payments made to all Area Councillors and remit it to the GRA.
According to Finance Minister Seedy Keita, this new measure is part of government revenue administration mechanisms for the 2027 financial year.
He announced this new policy during his budget speech at the National Assembly on Friday.
“Government will enforce provisions of the Income and Value Added Tax Act, 2021 and effective immediately, all Local Government Authorities are required to levy and remit income tax on payments made to all Councillors,” Keita said.
Areas Councillors who are not on salary get only allowances which are not taxed. The new measures therefore mean they must pay income tax from whatever income they get from their councils.