Budget Review 2018: luxury cars attract ¢1K to ¢2K levy

Finance Minister, Ken Ofori Atta has revealed a new tax imposed on luxury vehicles that are brought to Ghana.

 According to Ken Ofori Atta, all luxury cars with an engine capacity of 3.0 litres and above, will attract a tax of between GHS1000 and GHS2000.

Speaking on the floor of Parliament as he presented the 2018 Budget review, Finance Minister Ken Ofori Atta stated “On the under-performance for the first five months of 2018, we will end the year with an estimated deficit of 4.9% of GDP compared to the programmed target of 4.5%, resulting in a fiscal gap of GHS870 million, unless we immediately implement some fiscal measures; intensive tax compliance measures, New revenue measures, Intensive Conversion of NHIL (2.5%) to a straight levy, Conversion of GETFund VAT rate of 2.5% to a straight levy, Imposition of luxury vehicle tax of GHS1,000 – GHS2,000 on non-commercial vehicles with capacity of 3.0 litres and above, review of PIT to include an additional band of GHS10,000 and above per month at a rate of 35% and downward adjustment discretionary expenditures.”

The review is as a result of the country’s Financial Management Administration Act which requires the Finance Minister to come before Parliament not later than July 31, prepare and submit to Parliament a Mid-Year Fiscal Policy review.