Nearly a year after it came into force, the opposition National Democratic Congress (NDC) wants the government to scrap the luxury vehicle tax.

A release from the NDC MPs’ spokesperson on finance, described the tax as “economically inefficient.”

Cassiel Ato Forson, ahead of a scheduled budget review on Monday, July 22 said the tax which was announced in the previous budget review is a betrayal of the NPP’s promise to Ghanaians.

Cassiel Ato Forson

The tax, which requires vehicles with engine capacity of 3.0 and above to pay a luxury tax, was justified by the government as a revenue generation avenue.

Commercial vehicles, trucks, ambulances and other select vehicles are, however, exempted from the luxury tax.

Car owners who fall in the category have since protested the move saying the government’s revenue generation scheme is causing them hardships.

The NDC, ahead of the budget review, wants the government to use the opportunity to scrap the tax.

Besides that, they have asked that the government stays far from announcing new taxes.

Hold off 5% straight levy implementation -- AGI pleads

According to Ato Forson, the NPP also used the back door to increase VAT by 5%- a move which has heaped additional hardship on the people.

The Ajumako-Enyan-Esiam MP said the government should avoid such “subterfuge and shenanigans” in the future.