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Gov’t imposes new tax on luxury vehicles

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Government is set to introduce a new levy on vehicles with engine capacities of 3.0 litres and above.

This imposition of the new levy will be known as a luxury vehicle tax.

The levy, according to government will be paid on first registration and subsequently annually during renewal.

This was made known by the Finance Minister Ken Ofori-Atta during the presentation of the mid-year budget review.

“Government proposes to introduce a luxury vehicle levy on vehicles with engine capacities of 3.0 liters and above. The levy will be paid on first registration and subsequently at annual renewal,” he said.

The Minority Spokesperson on Finance, Cassiel Ato Forson at a Minority Mid-Year budget roundtable had hinted that government will in the mid-year budget review announce excise tax on luxury vehicles (10 % on vehicles with engine capacity above 3.5 capacity).

Ken Ofori Atta

 Finance Minister Ken Ofori-Atta

He had also revealed an increase in the communications service tax (from 6% to up to 12%) and the re-introduction of VAT on financial services which was scrapped in the 2017 budget.

Mr. Ofori-Atta however assured that commercial vehicles will not be included in the levy.

“Commercial vehicles will be exempted from this policy.”

Already, some have questioned the policy explaining that such cars are already paying huge taxes upon importation, and are also forced to drive on bad roads.

Car owners and importers are already divided over the policy.

 

Source: Citinewsroom

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