Business News of Mon, 15 Apr 201924
Government misses luxury vehicle tax revenue target
Government has missed its target for the luxury vehicle tax for the first five months of its operation by about 80 percent.
The Ghana Revenue Authority was able to rake in about a fifth of the 104 million cedis target from the tax.
The Luxury vehicle tax was introduced by government in 2018 to help improve domestic revenue mobilization.
Per the law, vehicles with engine capacity above 3.0 are expected to pay specific amount.
In an interview with Citi Business News, President of the Car Rental Association of Ghana (CRAG) Seth Yeboah Ocran said his outfit has stopped importing cars with engine capacity of above 3.0.
He called on government to remedy the situation as Ghana loses a lot of revenue.
“Most of my colleagues are not buying those vehicle with big engine. One way or another it is affecting our operations as well because most of the rules you agree with me are motorable especially with the coming in of the rain and we the rentals require these four runner vehicles to the hinterlands,” he said.
Mr. Ocran argued that the law is counterproductive since it is deterring business owners from import such cars.
He added that “many have taken the position not to bring in these vehicles anymore, resulting in buying the smaller capacity vehicles”.
“Not only will this affect the DVLA target, but it will go a long way to affect corporate tax as well. We are ready to engage government to see ways of making this more profitable to arrive at a conclusion.”
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