The government introduced the vehicle luxury tax in August 2018 as a new policy to help raise more revenue
Finance Minister Ken Ofori-Atta has indicated that the luxury vehicle tax introduced last year would be reviewed in the mid-year budget review.
Speaking at a press briefing on Friday, Mr Ofori-Atta said the decision to review the tax was influenced by some stakeholder engagements.
According to the finance minister, the mid-year review would be presented before July 31 this year.
Mr Ofori-Atta introduced luxury vehicle tax last July in the government’s Mid-Year Budget Review.
The government at the time said the move was to raise more revenue by taxing the wealthy a little more.
According to the law, vehicles with engine capacities of 3.0 – 3.5 litres will attract an annual tax of GH¢1,000; those with engine capacities of 3.6 – 4.0 litres will pay GH¢1,500 annually; while 4.1 litres and above are to an annual tax of GH¢2000.
Demo against luxury vehicle tax
A coalition of car dealers and owners in March this year staged a demonstration against the luxury vehicle tax in Accra.
They drove their vehicles in a convoy through some principal streets, protesting the levy which was introduced by the government in August 2018 specifically for vehicles with engine capacity of 3.0 litres and above.
Dubbed: “Bobolebobo demonstration”, the demonstrators were from the Vehicle and Asset Dealers Association of Ghana (VADAG), National Concerned Spare Parts Dealers Association, True Drivers Union, Concerned Drivers Association, Ghana Committed Drivers Association and Chamber of Petroleum Consumers.
The coalition again threatened to hit the streets this month in protest against the levy imposed on luxury vehicles.
Speaking to JoyBusiness, President of the Association, Eric Kweku Boateng justified the need for the demonstration.
“The reason why we want to demonstrate again is that the Finance Ministery and government are not ready to listen to us. Since they come in place of the luxury vehicle tax, our business has virtually collapsed. We can’t sit back and watch this happen. We will mount these protests in June,” he said.