The Minister for Finance, Mr. Ken Ofori-Atta, has indicated that Luxury Vehicle Tax would be scrapped off, following concerns raised by some Ghanaians.
Mr. Ofori-Atta stated that the government has noted suggestions from the general public on the implementation of the Luxury Vehicle Tax, and that the government is proposing to the House of Parliament, the withdrawal of the levy.
Presenting the Mid-Year Fiscal Policy Review of the 2019 Budget Statement and Economic Policy, the Finance Minister pointed out that the government will continue to improve compliance, expand the tax net and explore other innovative sources of raising revenue, other than the introduction of the Luxury Vehicle Tax.
The Luxury Vehicle Tax was introduced in July, 2018, to levy vehicles with engine capacity exceeding 3.0 litres of fuel consumption.
The Tax was introduced to control emissions and reduce the negative impact of climate change through the inception of the Sustainable Development Goals.
Vehicles with engine capacities of 3.0 to 3.5 litres were expected to pay an annual tax of GH¢1,000.00 while vehicles with engine capacities of 3.6 to 4.0 litres were expected to pay GH¢1,500.00 annually.
Also, vehicles with engine capacities of 4.1 litres and above were expected to pay an annual tax of GH¢2000.00.
Source: GhanaJustice/S.Ayisi
