NDC will abolish luxury vehicles tax- John Mahama

NDC Presidential Candidate for 2020 elections, John Dramani Mahama, on Thursday, April 18, 2019, announced that he would abolish the luxury vehicles tax introduced by the NPP government to tax vehicles with bigger engine capacities.

With many complaining about the impact of the tax on their operations especially commercial drivers and small business owners who use pick-up vehicles, Mahama said, the next NDC administration would scrap the tax if government does not abolish it.

Speaking to executives and drivers of the Neoplan station local GPRTU in Accra, Mr. Mahama argued that the new tax is itself not generating that much revenue and wondered why government would not scrap it.

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The tax affects all vehicles with capacity above 2.9 litres including commercial vehicles, farm tractors, pick up vehicles among others.

Minister of Finance, Ken Ofori Atta, in his mid-2018 budget review, imposed a luxury vehicle import tax as part of a new policy to help raise more revenue.

The implementation of the Luxury Vehicle Law commenced August 1, 2018, after Parliament passed it.

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An annual levy on vehicles with high engine capacities was consequently imposed after it was proposed by the government.

With the approval of the legislators for its implementation, vehicles with engine capacity of 2,950 to 3,549 cubic centimetres were required to pay a levy of GH¢1,000, while those with engines between 3,550 to 4,049 cubic centimetres would pay GH¢1,500.Vehicles with engine capacities above 4,049 cubic centimetres are also obliged to pay GH¢2,000.

Six groups on Thursday, March 7, 2019, demonstrated against the Luxury Vehicle Tax by driving their vehicles to the premises of the Ministry of Finance, Parliament and the Jubilee House in Accra.

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Source: YEN.com.gh