Business News Fri, 20 Jul 2018
Finance Minister Ken Ofori-Atta has proposed a new tax levy in the mid-year budget review which will cover vehicles with an engine capacity of 3.0 litres and above.The Minister made this known while presenting the mid-year budget review on the floor of Parliament on Thursday, July 19.
According to Ken Ofori-Atta, the levy is set to be imposed on luxury vehicles with the exemption of commercial vehicles.
The levy will be paid on the first registration and subsequently every year during vehicle registration renewal.
“Government proposes to introduce a Luxury Vehicle Levy on vehicles with the engine capacities of 3.0 litres and above. The levy will be paid on the first registration, and subsequently at annual renewal, and commercial vehicles will be exempted from this policy,” he confirmed.
Mr Ofori-Atta, however, mentioned that the initiative will help government generate revenue, and this will bring greater clarity and growth to enhance projects like road and railway development.
This, he said, will also enable government embark on developmental projects to the benefit of every Ghanaian across the country.
“Our vision is in line with the Sustainable Development Goals to ensure that every citizen obtains a fair share of the national pie,” he said.
He further revealed that the Value Added Tax (VAT) on communication services which was scrapped in 2017 is going to be re-introduced with an increase of 6 per cent from an initial 12 per cent.
According to him, all these measures have been taken to restructure and re-engineer the economy for growth and development.
Source: 3 News