Budget Review: Vanished Luxury Vehicle Tax

General News of Monday, July 29, 2019

Source: theghanareport.com

2019-07-29

The government says it has withdrawn the controversial levy on the luxury vehicle tax, which was very much resisted when it was introduced.

Finance Minister Ken Ofori-Atta, who made the announcement on Monday during the mid-year 2019 budget review, said the Akufo-Addo-led government had taken note of the concerns raised by many after the introduction of the tax.

"We have taken note of the suggestions of the general public on the implementation of this tax and, Mr. Speaker, as a government that is listening, we are proposing to the House that the levy be removed," he said. he declares.

According to the minister, his department will continue to improve and expand the tax net through other innovative sources of domestic revenue.

The Minister said: "We will continue to improve compliance, expand the tax net and explore other innovative sources of revenue."

The luxury vehicle tax was introduced last July to take vehicles with a displacement greater than CC2.9 in line with the Sustainable Development Goals (SDGs), to control emissions and reduce the impact on fuel efficiency. climate change.

Under this tax, vehicles with a displacement of 3.0 to 3.5 liters were required to pay an annual fee of 1,000 GHC. Those with an engine displacement of 3.6 to 4.0 liters were required to pay 1500 GHC per year, while those with a displacement of 4.1 liters or more were required to pay an annual fee of 2000 GHC .

Near a year after its implementation, the levy met with opposition from several stakeholders.

The minister said the decision to withdraw the tax was influenced by the government's response to the implementation of the law by some stakeholders.