The Member of Parliament for North Tongu in the Volta Region, has rejoiced over the government’s u-turn on the luxury vehicle tax.
Finance Minister, Ken Ofori-Atta, announced in his presentation in Parliament on the mid-year budget review Monday, that the controversial tax has been withdrawn.
Ofori-Atta presented the budget review in Parliament Monday
Luxury vehicle tax yields GH¢21.3m in 5 months
Gov’t withdraws luxury vehicle tax
Reacting to this, Sam Okudzeto Ablakwa said it is “a major victory” to the demonstrators who marched in the capital, Accra, weeks ago protesting the tax and other economic hardships.
The legislator added that it is time “to reflect on the quality of research, the level of consultations and the soundness of policy assumptions that could have avoided this embarrassment.”
Who did the tax target?
The luxury vehicle tax required persons who rode vehicles with engine capacity of 3.0 or more, to pay taxes on the vehicles.
However, ambulances, trucks, commercial vehicles and other select vehicles were exempted.
The government justified the tax; saying that it was a way to get the rich to pay more while increasing revenue.
However, a host of persons rejected the move from the onset and called for its immediate abolishment.
Declaring same, the Minister said, “we have noted suggestions from the general public on the implementation of this tax; as a listening government, we are proposing to the House, the withdrawal of the levy.”
The House is expected to debate on the Finance Minister’s presentation on Tuesday.