It has emerged that the Members of Parliament (MPs) on the majority side in government were coerced to ensure the passage of the luxury tax law despite fierce rejection, MyNewsGh.com reports.
“We were all crying but we have no choice than to pass it”, member of the Finance Committee in Parliament and New Patriotic Party, (NPP) Member of Parliament (MP) for Bantama in the Ashanti Region, Hon. Daniel Frank Okyem Aboagye revealed.
According to the lawmaker, it was a painful decision for the government to take such a decision of taxing luxury vehicles but has to do it all in the name of developmental projects.
“Some of us were not comfortable but we need money to develop the country”, the financial Consultant spoke to Aduanaba Kofi Asante in a telephone interview monitored by MyNewsGh.com.
Luxury tax
The government introduced the vehicle luxury tax in August 2018 as a new policy to help raise more revenue.
Vehicles with engine capacity of 2950 to 3549 Cubic Centimetres are required to pay GH¢1,000, while those with engines between 3,550 to 4049 cubic centimetres pay GH¢1,500. Vehicles with engine capacities above 4049cc are to pay GH¢2,000.
The levy is also imposed on vehicles existing prior to the passage of the Law with the above listed cubic centimeters.
Vehicles whose road worthiness certificates have already been renewed prior to the passage of this Law in 2018 will pay the levy starting from their next renewal date in 2019.
The following categories of vehicles are exempt from the levy: tractors; ambulances; commercial vehicles that have the capacity to transport more than ten persons; commercial vehicles for the transport of goods; other exemptions as may be prescribed by the Minister responsible for Finance.
Source: MyNewsGh.com
