Minister for Finance has announced that governemnt of Ghana has decided to withdraw the luxury vehicle tax introduced in the 2018 national budget.
Speaking on the floor of parliament on July 29 during the mid-year budget review, Ken Ofori Atta said per the suggestions from the general public on the implementation of the tax, the government has decided to withdraw it.
"Mr. Speaker, Review of Luxury Vehicles Levy: Government in 2018 introduced the Luxury Vehicles Levy to raise revenue. We have noted suggestions from the general public on the implementation of this tax and Mr. Speaker, as a listening Government, we are proposing to the House, the withdrawal of the levy. We will continue to improve compliance, expand the tax net and explore other innovative sources of raising revenue."
Under the law vehicles with engine capacity above 3.0 Litres are charged fees ranging from GHS1,000 and above. The law has been criticized by car dealers and vehicle importers, arguing that it has increased their cost of doing business.
VADAG calls on gov't to scrap off luxury vehicle tax
Vehicle and Asset Dealers Association of Ghana, VADAG has asked the government to scrap off the luxury vehicle tax.
The association said the luxury vehicle tax introduced by the government is collapsing their businesses.
President of VADAG Eric Kojo Boateng said the appropriate step to be taken by the government is to scrap off the tax.
"We are not saying they should go and review our stake is that they should scrap it ones and for all because our business is dying that is our stake so we are appealing to government, Ken Ofori Atta and Kweku Kwateng they should look at it that is our stance, the government target for the first quarter they targeted around GHS136 million but they did not meet the target..."
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