Business

Gov’t seeks to boost revenue with luxury car levy

Government is considering instituting a new levy on range of cars which fall within the brackets of luxury vehicles.

The proposed luxury vehicles levy is in their bid to boost revenue mobilisation to meet the revenue targets for 2018, as it failed to meet targets in the first five months of the year.

The levy will be applicable to vehicles with engine capacities of 3.0 litres and above and will be paid on first registration and subsequently on annual renewal.

Minister of Finance, Mr. Ken Ofori-Atta, made the declaration during the presentation of the mid-year Budget Review for 2018, on Thursday.

He assured that commercial vehicles would be exempted from this new policy.

“We propose to introduce a luxury vehicle levy on vehicles with engine capacities of 3.0 litres and above,” he stated.

Aside from this policy which will affect those incomes high enough to afford luxury vehicles, government will also introduce an additional band to the existing five-band graduated tax rate for individuals in the country.

The additional band, he said, was to make the rates more equitable in line with best practice.

“Hence a 35 percent income tax will be applied to incomes over GH¢10,000.00 per month,” he said.

 

Do you want to be featured on Asempanews.com? Send us a message on our Facebook page now with your stories, photos or videos.

 Source: www.asempanews.com

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *