For the first time in the country’s history, owners of luxury vehicles with engine capacities of 3 litres or more will now pay an annual tax called Luxury Vehicle Tax on their vehicles.
Finance Minister Ken Ofori-Atta announced this in Parliament on Thursday when he presented the government’s Mid-Year Budget Review.
Christened Luxury Vehicle Tax, the government is seeking to raise more revenue by taxing the wealthy a little more.
Vehicles with engine capacities of 3.0 – 3.5 litres will attract an annual tax of 1,000 Ghana cedis; those with engine capacities of 3.6 – 4.0 litres will pay 1,500 cedis annually; while 4.1 litres and above are to an annual tax of 2000 Ghana cedis.
The mid-year budget review deflated anger especially by the Minority who predicted the Finance Minister was going to announce increases in VAT and National Health Insurance Levy.
But Mr Ofori-Atta announced, rather gleefully, “I’d like to assure the House that there will be no increase in VAT as has been speculated.”
The Finance Minister also stated that government intends to intensify tax compliance measures to make sure that they collect all taxes due the state.
He advised the Minority to stop taking direction on economic policy from social media.
