Government has announced the taxation of all luxury cars with an engine capacity of 3.0 litres and above attracting a tax of between GHS1000 and GHS2000,

This was announced by the Finance Minister Ken Ofori-Atta when he presented the mid-year budget review to parliament on Thursday, July 19, 2018.

He told the House: “On the under-performance for the first five months of 2018, we will end the year with an estimated deficit of 4.9% of GDP compared to the programmed target of 4.5%, resulting in a fiscal gap of GHS870 million, unless we immediately implement some fiscal measures; intensive tax compliance measures, New revenue measures, Intensive Conversion of NHIL (2.5%) to a straight levy, Conversion of GETFund VAT rate of 2.5% to a straight levy, Imposition of luxury vehicle tax of GHS1,000 – GHS2,000 on non-commercial vehicles with capacity of 3.0 litres and above, review of PIT to include an additional band of GHS10,000 and above per month at a rate of 35% and downward adjustment discretionary expenditures.”

Early on, the Minority in Parliament on Monday projected the imposition of more taxes on goods and services by the President Akufo-Addo-led government in its mid-year budget presentation.

For instance, the minority said Ghanaians should expect an increase in Value Added Taxes (VAT), introduction of a 2.5% Corporate minimum tax irrespective of profit or losses, and the imposition of a 10% excise tax on luxury vehicles with 3.6 engine capacity.

Further to that, it said government was seeking to reintroduce the already abolished VAT on Real Estate and an increase in Communication Tax (Talk Tax) from 6% to 12%.

These taxes, the minority noted, were captured in a document the government sent to the IMF some few days ago.

The Minority Spokesperson on Finance, Casiel Ato Forson, who read out a document detailing their perspective on the economy at a roundtable breakfast meeting in Parliament, Monday, said these taxes when introduced would “overburden” the already “burdened” Ghanaians.