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Luxury motor vehicle tax is a great tax, no cause to scrap it – Premium Motors CEO

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The Chief Government Officer of Quality Motors says the luxurious auto tax released last 12 months is a great tax and there is no purpose to scrap it.

Jihad Hijazi explained “…there is no rationale to scrap the luxury car or truck tax, I consider it is a great tax mainly because the tax alone is not a prohibitive tax. It’s a tax that is levied on vehicles that in my impression are not generally a necessity…”

Speaking in an exclusive job interview with JoyBusiness, Mr Hijazi, on the other hand, explained using engine ability to explain a luxurious motor vehicle is inappropriate. 

He advised govt to restructure the luxury automobile tax to exclude cars use for organization and concentrate on taxing the cars and trucks with consolation and has motor ability above 3.0cc.

“The definition of luxury has minor to do with engine capacity. Technologies is swiftly developing, promptly advancing and what this indicates is that we can have super motor vehicles, very expensive autos, luxury vehicles with much scaled-down engines like 1.5-litre engines. On the other hand, domestically we have employed engine capacity to classify a car as a luxurious”.

Assessment of the tax

Finance Minister Ken Ofori-Atta has indicated that the luxurious car or truck tax introduced very last calendar year would be reviewed in the mid-12 months spending budget evaluation. 

Talking at a press briefing very last Friday, Mr Ofori-Atta claimed the choice to review the tax was influenced by some stakeholder engagements.

Mr Ofori-Atta introduced luxury car tax previous July in the government’s Mid-Yr Price range Critique.

The authorities at the time said the transfer was to increase a lot more profits by taxing the rich a small more.

In accordance to the regulation, vehicles with engine capacities of 3. – 3.5 litres will catch the attention of an yearly tax of  GH¢1,000 individuals with engine capacities of 3.6 – 4. litres will spend GH¢1,500 per year though 4.1 litres and higher than are to an annual tax of GH¢2000.

In accordance to the finance minister, consideration is becoming specified to the luxury car or truck tax in the but to be introduced Mid-yr funds in parliament. 

Demo versus the tax

A coalition of motor vehicle dealers and proprietors in March this 12 months staged a demonstration versus the luxurious motor vehicle tax in Accra.

They drove their automobiles in a convoy by way of some principal streets, protesting the levy which was launched by the federal government in August 2018 especially for automobiles with motor ability of 3. litres and previously mentioned.

Dubbed: “Bobolebobo demonstration”, the demonstrators ended up from the Automobile and Asset Dealers Affiliation of Ghana (VADAG), National Involved Spare Parts Dealers Association, Genuine Motorists Union, Anxious Drivers Association, Ghana Dedicated Drivers Association and Chamber of Petroleum Individuals.
 





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