The leadership of the Car Owners and Dealers Association will next week meet the Ministry of Finance to discuss the luxury Vehicle Tax policy.
The association maintains the policy is crippling their businesses hence its call for it to be scrapped.
This tax was introduced by the government in 2018 to increase domestic revenue mobilization.
Speaking to Citi News the president of the Car Owners and Dealers Association, Eric Boateng said he is hopeful the government would listen to their concerns about the tax.
“[We are meeting the ministry] for the abolition of the luxury tax which we demonstrated against. We sent our petition to all the ministries, including the finance ministry, parliament and the Jubilee house. We were waiting for their response which never came, but fortunately two days they (finance ministry) gave us a call that we should come to the negotiation table for discussion.”
Luxury vehicle tax ill-conceived, gov’t must scrap it – Mahama
The Presidential candidate of the opposition National Democratic Congress (NDC), John Mahama has said his administration will scrap the luxury vehicle tax if it comes to power.
Describing the levy as an ill-conceived one, he said its introduction has overburdened commercial drivers.
Mr. Mahama has thus urged drivers to exercise restraint as the NDC will not hesitate to abolish the policy.
“Not too long ago, the government introduced the luxury vehicle tax. This tax was not well thought through before it was rolled out. They should have exempted all commercial vehicles. There are commercial vehicles without the yellow plates, but rather white plates yet they carry commercial goods. Once they exceed three litres, they are charged this luxury tax. This has brought untold hardship on some of the drivers especially those who work for the companies and others. Just recently, I heard that government has only been able to raise GHC 25million from the luxury tax if that is the case, then they should abolish it. If they don’t, we the NDC government will abolish it when we come into power,” he added.
Luxury vehicles tax
The government has collected some GH¢21.3 million in taxes from the use of vehicles with engine capacities of 2.9 litres and above between August and December last year, provisional fiscal data on public finances for last year has shown.
The amount is GH¢82.7 million or 79.52 per cent below the GH¢104million that was projected to be collected within the period. The projections were contained in the 2018 mid-year budget review.
The government expects to rake in at least 300 million cedis from the tax on luxury vehicles by the end of 2019
The tax, which forms part of the new policy measures introduced in the midyear budget review, is to help bridge the gap in revenue for the first half of the year [2018].
The figure was disclosed when Parliament passed the four bills approving the taxes introduced by the government.
Source: citi
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AS GHANA IS NOT A DEVELOPED A NATION SO MUST THE GOVERNMENT OF THE DAY LIST TO PLIGHT OF ITS CITIZNERY. NOBODY OR ASSOCIATION IS AGAINST THIS LUXURY TAX BUT THE WAY AND MANNER IT WAS INTRODUCED, NO ENOUGH EDUCATION NEITHER STAKEHOLDERS CONSULTATION. HOW MUCH DUTIES ARE PAID BY THOSE LIVING IN THE ADVANCED WORLD?,AND IF THERE IS CO2 EMMISION IS IT ONLY PRODUCED BY CARS WITH BIG ENGINES?. YES IT IS A GOOD TAX BUT IF WE HAD INVENTED OUR OWN AND COPY AND PASTE THIS HUGE BURDENS ON OUR PEOPLE WE WOULD HAVE BEEN WHERE WE ARE TODAY. NANA ADDO MUST LIST AND MAKE A LOT OF CONSIDERATIONS TO ESTABLISH EQUILIBRIM BETWEEN SELLERS, USERS, FUEL SELLER AND THE ECONOMY.THIS IS WHAT WE DO ALWAYS, COPYING BLINDLY AND MOVING THIS COUNTRY SO FAST THAT NO ONE IS ABLE TO IMAGE
What at all is wrong with Ghanaians that they sometimes comment/speak like they are either toddlers or not exposed to what goes on in other parts of the world to the extent that even a whole former president who is well traveled also expresses himself in such unpatriotic manner. Every developed country in the world charges these higher taxes on certain vehicles with high engine capacity and in addition now some countries charges taxes for cars with high C02 emissions. Apart from the country needing all the revenue it can get, it is not compulsory that one must drive a vehicle with 3 liter engine so when you choose to drive such a vehicle then you must be ready to pay the cost that go with it. Even Warren Buffet who is arguably the third richest man in USA drives a very modest car and yet broke people in Ghana wanting to own and drive V8 and V6 cars whilst complaining about the tax on such cars. HOW PATHETIC!!
It will be good if the current government listen to the masses and scrap the luxury tax. This will tell Ghanaians NPP is a listening government. They should not wait for NDC to come and do it to discredit NPP. As I write, I have putting my Toyota hilander on sale because am now a pensioner and I bought this vehicle long before I retired. Where will I get GHC2000 to renew my road worthy? I therefore want to sell it but nobody is ready to buy. Is this helpful? I rest my case. Thanks