Business News Mon, 1 Jul 2019

Our businesses are dying, scrap off luxury vehicle tax - VADAG

Vehicle and Asset Dealers Association of Ghana, VADAG has asked the government to scrap off the luxury vehicle tax.

The association said the luxury vehicle tax introduced by the government is collapsing their businesses.

Responding to plans by the government to review the luxury vehicle tax in an interview with Joy FM, President of VADAG Eric Kojo Boateng said the appropriate step to be taken by the government is to scrap off the tax.

"We are not saying they should go and review our stake is that they should scrap it ones and for all because our business is dying that is our stake so we are appealing to government, Ken Ofori Atta and Kweku Kwateng they should look at it that is our stance, the government target for the first quarter they targeted around GHS136 million but they did not meet the target..."

Minister for Finance, Ken Ofori Atta last month disclosed that the government has put in place plans to review the luxury vehicle tax introduced in the 2018 national budget.

Under the law vehicles with engine capacity above 3.0 Litres are charged fees ranging from GHS1,000 and above.

The law has been criticized by car dealers and vehicle importers, arguing that it has increased their cost of doing business.

Speaking at a press briefing, Finance Minister Ken Ofori-Atta assured that the government has listened to the concerns of Ghanaians and will make changes to the law in the mid-year budget review scheduled for next month.

"We have received quite a bit of feedback from the implementation of that but we did go through a lot of stakeholder discussions before that occurred and so we are almost coming to a year of implementation and therefore we look to review it so that concerns are taken care of but the law is there and I believe is a good law.."

Source: Primenewsghana.com
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