Gov’t to raise GH¢300m from tax on luxury vehicles

By on

The government is to rake in at least 300 million cedis in revenue from taxes on luxury vehicles by the end of this year.

The tax, which forms part of the new policy measures introduced in the midyear budget review, is to help bridge the gap in revenue for the first half of the year [2018].

The figure was disclosed when Parliament passed the four bills approving the taxes introduced by the government.

300 million cedis additional revenue

The Chairman of Parliament’s Finance Committee, Dr. Mark Assibey Yeboah told his colleague MPs that the government is expecting to raise some 300 million cedis from the levy imposed on luxury vehicles with engine capacity of 3.0 liters and above.

“The annual levy will be paid to the DVLA at the time of renewing the vehicle’s annual roadworthy certificate. The estimated revenue to be generated from the levy will be 300 million cedis for the period August to December 2018,” he stated.

But the Ranking member for the Finance Committee, Cassiel Ato Forson wants the government to exclude 3.0-litre capacity luxury vehicles that are not serviceable.

“If for instance I have a car with engine capacity of 3.0 liter and above and for some strange reasons that vehicle doesn’t work or is unserviceable, I am obliged by the Act to pay for this tax in spite of the range that will be set,” he argued.

After missing the revenue target by 1.4 billion cedis between January and May this year, the Finance Minister, Ken Ofori Atta sought approval from Parliament to implement some three tax policy measures.

These include; the separation of GetFund and NHIL from the VAT, charging 35 percent tax on all income above 10, 000 cedis, the introduction of a levy on luxury vehicles with engine capacity 3.0 liters and above.

The House, over the weekend, passed all the amendments that will set the taxes in motion, effective next month.

VAT recalibration to raise 500 million cedis

Already, the Finance Minister, Ken Ofori Atta has indicated that the ministry should accrue about 500 million cedis from the amendments to the VAT i.e the recalibration.

The government has since reviewed its revenue expectation for this year downwards, from 51 to 50.86 billion cedis.

ABOUT: Ellsamwise King

[email protected]

A Civil/Structural Engineer & Freelance Blogger, Journalist, Social Media Mogul, Digital Marketer, Entrepreneur, and Philanthropist. CEO of Skyline Consortium & 9189 Media Consult and Co-Founder of Team Sarkodie. An alumnus of Prempeh College where he read General Science. He holds a first degree in Bachelor of Science from the Kwame Nkrumah University of Science and Technology. His mentors are Alvar Alto, Rupert Murdoch, Piers Mogan, Mensa Otabil, Bernard ElBernard Nelson-Eshun. Blogs for; http://www.233times.com | www.paemuka.com | http://www.playmusicgh.com | http://www.muzikiq.com | http://www.brandsaid.biz . Social Media Manager for Eon3 Group | BrandsAid | Kings Crown Media | Carabao Africa Ghana & Africa | Calvary Temple - ICGC | Team Sarkodie | Muzik IQ | Kwaw Kese Please inquire more via Email: [email protected] | [email protected] Instagram & Twitter: @wise_tskd Facebook: Ell Samwise LinkedIn: EllSamwise King Dogbe

view all posts by: Ellsamwise King  

ABOUT 233TIMES

233times.com is a Ghanaian media house which serves as a major source of exclusive interviews ,music and video downloads, news and more.

233times.com reports on major events,news covering entertainment, politics, sports, etc from within Ghana, Africa and beyond.

We have a platform for the amateur artistes to portray their staggering talents ...more...

WE ON SOCIAL MEDIA. FOLLOW US

facebook twitter youtube google plus linkedIn

To advertise with us or make enquiries, please visit 233times.com/advertise or call +233249455142 (Selorm), +233248185848 (Nana Kwesi)