Government to introduce luxury vehicle levy

Minister of Finance, Ken Ofori Attah, has revealed that government will soon impose tax on luxury cars with an engine capacity of 3.0 litres and above.

Presenting the mid-year budget review to parliament on Thursday, Mr Ofori-Atta said the luxury vehicles will attract a tax of between GHS1000 and GHS2000.

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“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.

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“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”, he stated.