Parliament approves deletion of the tax on luxury vehicles

General News on Friday, August 2nd, 2019

Source: citinewsroom.com

2019-08-02

Parliament pbaded the luxury vehicle tax (repeal) bill to eliminate luxury vehicle taxes introduced by the government last year.

In the mid-year budget review of 2019, the government announced in July, through the Minister of Finance, the decision to remove the tax on the use of luxury vehicles.

"In 2018, the government introduced the luxury vehicle tax to generate revenue. We have taken note of the general public 's suggestion on the implementation of this tax and, Mr. Speaker, as a government, we are proposing to the House that the levy be removed. We will continue to improve compliance, expand the tax net and explore other innovative sources of revenue collection, "said Ken Ofori-Atta.

Parliament, which had reviewed the decision and others before suspending its work Friday approved the removal of the tax.

Prior to approval, the minority indicated that the bill lacked certainty.

"We must be guided. Since its exploitation, what were its advantages or challenges? We are rushing through the process and we are not consulting on this issue, "said Haruna Iddrisu, minority leader, during her deliberations.

For months, the Association of Vehicle and Assets Dealers of Ghana (VADAG) and other automobile industry badociations have complained about the tax.

They claimed that the tax rate on luxury vehicles had a negative impact on their business, but dealers welcomed the announcement by the government to remove the tax.

Earlier Friday, Parliament pbaded the bill on cap and realignment of set-aside funds.