Business

Vehicle owners applaud gov’t for scrapping Luxury Vehicle Tax

The Coalition of Vehicle Owners have commended government for scrapping the Luxury Vehicle Tax.

The tax which was introduced barely a year ago, affects luxury cars with an engine capacity of 3.0 litres and above and the owners are made to pay tax ranging between GHȻ1000 and GHȻ2000.

Presenting the mid-year budget review to parliament on Monday, July 29, Mr Ofori Atta announced the withdrawal of the tax that has met strong opposition from vehicle owners and the general public.

Reacting to the removal of the luxury tax, spokesperson for the Coalition of Vehicle Owners Duncan Amaoh in an interview with Onua News expressed joy and described the abolishing of the tax as good news.

He advised that government should take the necessary step in ensuring that they do broader consultation if they want to implement similar policies.

“It is good news to the larger Ghanaians, it is also good news to the car importing communities and it is good news to road users. If you recall, we had issues with the fact that some vehicles that are not worth GH₵5,000 were being asked to pay GH₵1,000 before they can be able to drive on the road. The implementation does suffer a lot of challenges”, he said.

“If you recall government has a certain target and they couldn’t even realize 30% of its target. But this clearly is a good news, but again, we would want to advise that in future government should do well to consult broadly so that inputs can be made from all quarters so we do not come to this form of situation again”, he advised.

Mr. Amoah added that the government suffered a lot of setbacks because of not involving all stakeholders in the formulation and the implementation process.

He said it is very painful some people have paid the luxury tax, and stated it is good the government has listened to the outcry of Ghanaians on the matter.

Duncan Amoah further said he is very optimistic the abolishment of the tax will boost business and the economy as a whole.

“Clearly businesses are going to be a bit better now, because if I run a business that involves a use 3 or 4 pickup vehicles and these pickups are not having commercial registration, it means that I would have to pay one thousand each for them.

“This will affect my business by figures, even for job creation in terms of people I could hire. So, I would need to be careful because I would be making money for authorities and DVLA”, he said

By Marshall Bobobee|3news.com|Ghana

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