On the 19th of July, 2018, the finance minister of the republic of Ghana Honourable KEN OFORI ATTA read the midyear budget at the parliament house. This is to give an overview of the country's economy situation in the middle of the year. Prior to the day, they were rumours of increase in taxes which got the whole country talking.
And on that said day, the new taxes announced include the one on luxurious vehicles and this is where my interest is.
Section 5 of the document, policy number 225, luxury vehicle levy states that “Government proposes to introduce levy on vehicles with engine capacity of 3.0 and above. The levy will be paid on first registration and subsequently at annual renewal. Commercial vehicles will be exempted from this policy “
These taxes have been introduced because these vehicles presumably cost more, they consume more fuel and produce more emission gases hence the taxes. The following are points I picked from the policy
1. If a company say Company A, a private entity buys a vehicle with an engine capacity of 3.0 and uses it for marketing purpose to generate income for the company as well as the C E.O of the company using it for personal activities , will it be classified as a commercial vehicle or not?
2. People will always look for loopholes and smart ways to evade taxes and levies. In a similar scenario as thee above point, Company A can buy a car with such specifications through a Vehicle Rental Agency formed by the company itself and it will be classified as a vehicle for commercial purposes i.e. rentals. Have the policy makers thought of that and how we will they tackle this issue?
3. For me, I think this policy could have been reframed to boost the manufacturing of vehicles in this country, which is KANTANKA AUTOMOBILES. The policy could have been “imported vehicles with 3.0 engine capacity which are not for commercial purposes will attract a levy of GH¢ 1,000.00 on registration and subsequently at annual renewal with used imported vehicles with same specifications attracting more fees. This is a perfect way of killing two birds with one stone.
This will in a way entice people to buy from KANTANKA AUTOMOBILE COMPANY as a way of avoiding this levy. In return it will have impact on the economy and the employment rate in this country. The importation of used vehicles will also be reduced by some figures if only the government is serious about preventing the importation of over used vehicles.
This is my perspective on the proposed LUXURIOUS VEHICLE LEVY and it calls for more introspection. Thank you.
About the writer
Edmond Nana Cabir Flynt is a vehicle sales advisor based in Takoradi - Ghana. He is also a volunteer, an entrepreneur, and auto show radio presenter.
For further enquiry, consultation, advertisement, product promotion (vehicle related), vehicle and accessory sale, contact him on the following numbers +233(0)209461930 /+233(0)548383591 and email [email protected]