Car dealers will meet the Ministry of Finance on the luxury vehicle tax



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News from Sunday, April 21, 2019

Source: citinewsroom.com

2019-04-21

Ken Ofori Atta Jaw Ken Ofori-Atta, Minister of Finance

The leaders of the Association of Car Owners and Dealers will meet with the Ministry of Finance next week to discuss the policy of taxation of luxury vehicles.

The badociation maintains that this policy paralyzes their businesses, hence its call for its demolition.

The government introduced this tax in 2018 to increase domestic revenue mobilization.

Speaking to the President of the Citi News Automobile Owners and Dealers Association, Eric Boateng said he hoped the government would listen to their concerns about the tax.

"[We are meeting the ministry] for the abolition of the luxury tax against which we have manifested. We sent our petition to all ministries, including the fiance's ministry, the parliament and the jubilee house. We were waiting for their response that never arrived, but fortunately, two days later, they (the Department of Finance) called us to ask us to go to the bargaining table to discuss.

Tax on luxury vehicles poorly designed, the government must abolish it – Mahama

The presidential candidate of the National Democratic Congress (NDC), the opposition party, John Mahama, said his government would eliminate the tax on luxury vehicles if it came to power.

Describing the poorly designed tax, he explained that his introduction had overloaded commercial drivers.

Mr. Mahama therefore urged the drivers to exercise restraint because the NDC will not hesitate to abolish this policy.

"It is not so long ago, the government introduced the tax on luxury vehicles. This tax was not well thought out before its deployment. They should have exempted all commercial vehicles. There are commercial vehicles without yellow plates, but rather white plates that carry commercial goods. When they exceed three liters, they must pay this luxury tax. This has resulted in untold hardship for some drivers, especially those who work for businesses and others. Recently, I heard that the government could only raise 25 million GHC from the luxury tax. If so, then it should be abolished. If they do not do it, the NDC government will abolish it when we come to power, "he added.

Tax luxury vehicles

The government has collected about 21.3 million GH ¢ in taxes from the use of vehicles with a displacement of more than 2.9 liters between August and December, according to provisional fiscal data on public finances from last year.

This amount is lower by GH ¢ 82.7 million, ie 79.52% below the € 104 million expected for this period. Forecasts were included in the mid-year budget review of 2018.

The government plans to withdraw at least 300 million cedis from the tax on luxury vehicles by the end of 2019

The tax, which is part of the new policy measures introduced during the mid-year budget review, is expected to fill the revenue gap for the first half of the year. [2018].

The figure was revealed when Parliament pbaded the four bills approving the taxes introduced by the government.

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