Embarrassment of the tax on avoidable luxury vehicles – Ablakwa

General News of Monday, July 29, 2019

Source: Myjoyonline.com

2019-07-29

The MP for North Tongu, in the Volta region, welcomed the government's decision to reverse the luxury vehicle tax.

Finance Minister Ken Ofori-Atta announced Monday in his presentation to Parliament on the mid-year budget review that the controversial tax had been withdrawn.

Sam Okudzeto Ablakwa said it was a "major victory" for protesters who marched in the capital, Accra, to protest economic and other hardships.

The legislator added that it is time "to reflect on the quality of the research, the level of consultation and the validity of the political hypotheses that could have avoided this embarrbadment".

Who targeted the tax?

The luxury vehicle tax required drivers of vehicles with a displacement greater than or equal to 3.0 or higher to pay vehicle taxes.

However, ambulances, trucks, commercial vehicles and other selected vehicles have been exempted.

The government justified the tax; saying that it was a way to get the rich to pay more while increasing their incomes.

However, a crowd of people rejected this initiative from the beginning and called for its immediate abolition.

In saying the same thing, the minister said, "We have taken note of suggestions from the general public about the implementation of this tax; as a responsive government, we are proposing to the House the withdrawal of the tax ".

The House should debate the finance minister's presentation on Tuesday.