Mr. Bawa earns an annual salary of GHC 35,000. He pays 5% of his salary into a Social Security fund. Calculate his taxable income.

Step 1: Calculate Social Security Contribution.
Mr. Bawa pays 5% of his annual salary into a Social Security fund.
Annual Salary = GHC 35,000

$$\text{Social Security Contribution} = 0.05 \times 35000 = \text{GHC } 1750$$

a) Calculate his taxable income.
Taxable income is the annual salary minus the social security contribution, as it is stated that he pays no tax on this contribution.

$$\text{Taxable Income} = \text{Annual Salary} - \text{Social Security Contribution}$$ $$$$