EconomyFeatured

Luxury Vehicles Tax: Car dealers to meet Finance Ministry

The leadership of the Car Owners and Dealers Association will this week meet the Ministry of Finance to discuss the luxury Vehicle Tax policy.

The association maintains that the luxury Vehicle Tax policy is negatively affecting their businesses and therefore government must scrap the policy.

Speaking in an interview with Accra based Citi FM,  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.”

The law imposing the annual tax on vehicles with high capacity engines started August 1, 2018.

According to the GRA, the tax affects vehicles with engine capacity of 2950 Cubic Centimeters and more, and that the Driver and Vehicle Licensing Authority (DVLA) is the authorized body to collect the levy ranging from GHȻ1,000 to GHȻ2,000 on behalf of Government.

Meanwhile, 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.

ghanatalksbusiness
Show More

Related Articles

Back to top button