Government has withdrawn the Luxury Vehicle Levy after car dealers and private citizens expressed concerns over its introduction a year ago.
Parliament, last year August, passed a law for taxes to be placed on vehicles with engine capacity of 2950 Cubic Centimetres (cc) and above in a bid to shore up government revenue. Vehicles with capacity of 2950 – 354cc were to pay GH¢1,000 when renewing their road worthy; vehicles with 3550cc – 4049cc were also to pay GH¢1,500; and any vehicle above 4049cc paid GH¢2,000.
However, vehicles such as tractors, ambulances, commercial vehicles with a capacity to transport more than 10 passengers, and commercial vehicles for transporting goods were all exempt from the tax. The tax was one of the initiatives to help address revenue shortfalls as well as boost domestic revenue mobilisation for the country.
But presenting the Mid-Year Budget statement in parliament, Finance Minister Ken Ofori-Atta announced the withdrawal of the tax over concerns expressed by citizens and car dealers who said the introduction of the tax is impacting negatively on their business.
“Government in 2018 introduced the Luxury Vehicles Levy to raise revenue. We have noted suggestions from the general public on the implementation of this tax and we are proposing to the House, the withdrawal of the levy. We will continue to improve compliance, expand the tax net and explore other innovative sources of raising revenue,” he said.
This means that all our tenants at Green Views can now licence their cars and renew their road worthy at the Drivers and Vehicle Licencing Authority (DVLA) without any additional charge once parliament repeals the law that established the Luxury Vehicle Levy.