File photo: A luxurious vehicle

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.

Finance Minister, Ken Ofori-Atta

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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.

Some Majority MPs

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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 | | Adwoa Gyasiwaa Agyeman