6
Business News Sat, 3 Aug 2019

Parliament approves removal of Luxury Vehicles Tax

Parliament has passed the Luxury Vehicle Levy (Repeal) Bill, to scrap the taxes on luxury vehicles introduced by government last year.

The move gives effect to one of the policy measures announced in the Mid-year review by Finance Minister, Ken Ofori-Atta on Monday.

The Finance Minister in his Mid-year review presentation to Parliament in 2018, introduced the tax which mandated owners of luxury vehicles with engine capacities of 3 litres or more, to pay an annual tax on their vehicles.

However, the implementation was greeted with a series of protests by owners and dealers in vehicles with engine capacity of 3.0 and beyond.

Luxury cars demo

Earlier this week, Mr Ofori-Atta told Parliament, the government had “noted suggestions from the general public on the implementation of this tax” and proposed its withdrawal only a year after implementation.

JoyNews correspondent in Parliament, Kwesi Parker-Wilson reported Thursday that prior to the approval, the Minority indicated that the Bill lacked credibility.

The House then approved by a majority voice vote, to repeal the Bill, despite the Minority’s decision to abstain from the exercise, the reporter added.

Earlier the House passed the Energy Sector Levy Act (ESLA) Amendment Bill, which paves the way for the government to increase tax on certain fuel products.



This means that litre of petrol and diesel will go up by GHp 20 while a kilogram of liquefied petroleum gas (LPG) will also go up by GHp 8. That means a gallon of petrol and diesel will now go up by extra GHp 90.

Government in 2017 issued the Energy Sector Levy Act (ESLA) Bond, which raised almost GH? 6 billion on the back of ESLA levies to pay for legacy debts from the previous NDC administration.



The bond proceeds were used to liquidate approximately 60% of the energy sector legacy debts.

The increment according to the Finance Minister, will “enable Government issue additional bonds to pay down our energy sector debt obligations.”

Source: Myjoyonline.com
Related Articles: