Finance Minister, Ken Ofori-Atta has disclosed that all luxury cars in the country will be attracting tax to meet fiscal deficit target.
He said this while presenting the mid-year budget review in Parliament, Thursday.
According to him, "we are converting the NHIS 2.5% to a straight levy of 2.5%; Converting GETFUND of 2.5% to the straight levy of 2.5%. VAT will thus be maintained at 12.5%..." adding, there wll be an "imposition of luxury vehicle tax of GHS1,000 – GHS2,000 on non-commercial vehicles with capacity of 3.0 litres and above.”
Source: Peacefmonline.com
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The Minister's definition of luxury vehicles is warped and cannot be limited to Engine Capacity. Luxury is not in the engine capacity but the vehicle make and specs. A 1.8litre engine Mercedes Benz or BMW Salon car with full specs cannot be compared with a 3.5litre Hyundai SantaFe. Common luxury Brands like Mercedes, BMW, Lexus, Infinity, Acura, etc are all luxurious irrespective of their engine capacity. The definition must be comprehensive enough to capture the smart rich people who would want to outsmart the new tax.
Mr Minister, I hope our politicians with numerous V8s WONT BE EXEMPTED. Quite unfortunate its the taxpayers money that will be used to pay these taxes for them.
Government has to create more jobs and make money through income tax....i like the new move though...elsewhere,there is tax on luxury.only ndc dùmp apés will reject this initiative.
When will you people stop gyimiiiiiii... this policy is long over due... go to Europe and most advanced countries. ..
haters....he is still your Minister. You can go to hell if you have a problem with that. shame on you
living int he US, i pay almost 32% of my income as taxes. That's how I am able to enjoy good roads and good school districts. I don't understand how Ghanaians pay 12% in VAT and yet get free education and want health care and all that.
If you can afford a luxury car then you should pay more taxes. Brilliant move from the finance minister. NDC was shouting about a VAT Increase, where is it? Shame on them@
The definition of a luxury car using litres is very incompetent.. Big cars are used mostly because of the bad roads... Also we have fuel efficient costly and extremely luxurious cars... Politicians should think outside the box....***barred word***
A MORON AS FINANCE MINISTER..ONLY IN A SHITHOLE COUNTRY GHANA..LOAN WITHOUT PROJECTS MINISTER