Gov’t withdraws levy on luxury vehicles – Ken Ofori Atta

The Government has told Parliament to drop the levy on Luxury Vehicles which was introduced in 2018.

The Finance Minister, Ken Ofori Atta has told Parliament to withdraw the tax.

Speaking at the 2019 mid-year budget review, Today, Monday Mr. Ken Ofori Atta said the government has taken into consideration the concerns raised about the levy.

“Mr Speaker, Review of Luxury Vehicles Levy: Government in 2018 introduced the Luxury Vehicles Levy to raise revenue. We have noted suggestion 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”.

Earlier this month, the Minority in Parliament demanded the removal of the luxury vehicle tax which it deems as “economically inefficient.”

The Minority insisted that the government had caused hardship for many Ghanaians through the “back door” with regards to the 5% increment in VAT.

“It is the expectation of the people of Ghana, that such subterfuge and shenanigan will not be repeated,” the Minority statement said.

“Off-budgeted transactions is yet another serious problem that can throw the entire 2019 Budget off-gear. The Minority is certain that this has resulted from the rushed implementation of populist and unsustainable campaign promises. If this practice should continue, the whole Budgetary process from now till the end of the year will be compromised. The Minority is cautioning government not to adopt the practice of replacing critical government expenditure with ill-advised spending on frivolous campaign promises,” the minority added.

“Ghanaians expect the outright withdrawal/removal of the economically inefficient luxury vehicle tax,” the Minority said in a statement.

The levy was introduced during the 2018 midyear budget review, which took effect in August 2018 despite opposition from various groups.

Giving its expectation of the review, the Minority in a statement signed by Ranking Member on Parliament’s Finance Committee, Cassiel Ato Forson said: “Ghanaians are expecting a realistic Mid-year Budget that will address the hardships they are currently facing and not the announcement of populist, vote-buying gimmicks.”

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