The government after review of the Luxury Vehicles Levy has decided to withdraw it, Finance Minister, Ken Ofori-Atta has announced.
Government in 2018 introduced the Luxury Vehicles Levy to raise revenue to levy vehicles with high engine capacities.
The tax regime then, requires vehicles with engine capacity of 2950 Cubic Centimeters and more are required to pay respective levies.
Presenting the 2019 Mid-Year Review Budget to Parliament on Monday, he stated “We have noted suggestions 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”.
The implementation of the levy generated widespread furore especially from the Vehicle and Assets Dealers Association of Ghana, who took to the streets to register their displeasure.
With this withdrawal, it is expected to be a big relief for the group and other stakeholders.
Source: B&FT Online