Government has scrapped the Luxury Vehicle Levy (Act 969) which was introduced by Parliament and assented to in July, 2018.
The decision, according to the Finance Minister, Ken Ofori-Atta followed criticisms from the general public on the implementation of the tax.
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The Luxury Vehicle Tax was targeted at owners of vehicles with engine capacities of three litres and above.
Required to be paid annually, vehicles with engine capacities of 3.0 – 3.5 litres attracted a tax of GH¢1,000.00; those with engine capacities of 3.6 – 4.0 litres paid GH¢1,500.00; while 4.1 litres and above paid an annual tax of GH¢2,000.00.
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Government was hit by series of demonstrations by many pressure groups including Vehicle and Asset Dealers Association of Ghana that demanded that the nuisance tax be scrapped.
Mr Ofori-Atta told Parliament while delivering the Mid-year Budget Review that, “as a listening government, we are proposing to the House, the withdrawal of the levy.
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“We will continue to improve compliance, expand the tax net and explore other innovative sources of raising revenue,” he added.
Source: Ghana | Adomonline.com | Adwoa Gyasiwaa Agyeman
