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Government to abolish Luxury Vehicle Tax

Ken Ofori-Atta – Finance Minister

Mr Ken Ofori-Atta, the Minister of Finance says government would consider withdrawing the Luxury Vehicles Tax from the tax regime of the country.

He said government had considered suggestions from the general public on the implementation of the tax, which it introduced in 2018 to raise more revenue.

Mr Ofori-Atta made this known in the presentation of the Mid-Year Fiscal Policy Review of the 2019 Budget Statement and Economic Policy & Supplementary Estimates in Parliament, Accra.

He said the government would continue to improve compliance, expand the tax net and explore other innovative sources of raising revenue.

Mr Ofori-Atta said revenue measures are being pursued vigorously to ensure that the revised domestic revenue target for 2019, which is estimated at GH¢8.3 million, is not compromised.

He said the measures include; the sale of an electromagnetic spectrum, telco’s licenses renewal, gains to be derived from the realisation of assets and mineral rights, and strengthening of compliance at the ports among others.

The Finance Minister said as part of government’s resolve to ensure that the 2019 budget is implemented as planned, the government is proposing again that the Energy Sector Levies Act, 2015 (Act 899) be restructured and rationalised to consolidate all the revenue legislation relating to the energy sector into one law.

He said government is proposing an upward adjustment in the Road Fund Levy, the Energy Debt Recovery Levy, and the Price Stabilisation and Recovery Levy to bring the ratios close to 21 per cent to help bridge the financing requirements.

The Minister proposed to increase the Communication Service Tax, introduced in 2008 to nine per cent, to develop the foundation for the creation of a viable technology ecosystem in the country.

He added that the increment would comprise amongst others, putting in systems to identify and combat cybercrime, protect users of information technology and combat money laundering and other financial crimes.

Source: GNA

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