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Gov’t imposes new tax on luxury vehicles  

luxiry

Government is set to introduce a new levy on luxury 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.

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”.

By: Jessica Ayorkor Aryee/citibusinessnews.com/Ghana.

 

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