Government of Ghana is set to abolish the luxury vehicle tax which was introduced last year.

The Finance Minister, Ken Ofori – Atta, in his mid-year budget review in Parliament, said while the tax was introduced to raise revenue, “we have noted suggestions from the general public on the implementation of this tax.”

The Luxury Vehicle Tax had been targeted at owners of vehicles with engine capacities of 3 litres and above.

Required to be paid annually, vehicles with engine capacities of 3.0 – 3.5 litres attracted a tax of ¢1,000; those with engine capacities of 3.6 – 4.0 litres paid ¢1,500; while 4.1 litres and above paid an annual tax of ¢2000.

But the announcement left the Coalition of Car Dealers unhappy. They staged a demonstration in March 2019 to register their displeasure with the tax.

The group of demonstrators from the Vehicle and Asset Dealers Association of Ghana (VADAG), National Concerned Spare Parts Dealers Association, True Drivers Union, Concerned Drivers Association, Ghana Committed Drivers Association and Chamber of Petroleum Consumers drove their vehicles in a convoy through some principal streets in the protest dubbed “Bobolebobo demonstration.”

Government has heard their cry.

Mr Ofori-Atta told Parliament “as a listening Government, we are proposing to the House, the withdrawal of the levy.

“We will continue to improve compliance, expand the tax net and explore other innovative sources of raising revenue,” he added.

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