Finance Minister Ken Ofori Atta has announced that the mid-year budget review which will be presented to parliament this month will focus on improving domestic revenue mobilization.
He said that Government will review the luxury vehicle tax in the mid-year budget review.
Speaking at a press conference, Mr Ofori Atta explained that compliance in task collection must be improved for government social intervention programmes to be executed.
“I have the issue of compliance to be able to raise revenue and I think that is going to be something that is really important.…. I think peer group countries are doing about 19%…. so you can see the gap we have to cover in terms of expanding the tax net….. that is also another area that we have to take care of,” he said
He added that there was a need for people to be committed in paying their taxes with compliance.
Meanwhile, the Vehicle and Assets Dealers Association of Ghana have served notice that they would go ahead with their planned demonstration despite assurances from government to review the luxury vehicle tax.
Finance Minister, Ken Ofori Atta announced plans to review that tax (luxury vehicle tax) introduced in the 2019 mid-year budget review.
Commenting on the luxury tax issue, the Chairman of the Vehicle and Assets Dealers Association of Ghana, Eric Boateng said that the association would only withdraw their decision when the tax is abolished.
“We are not saying that they should review, we want them to abolish it. So, whether they will review it or not that is not our problem,” he said.
He added that the demonstration would take effect on July 9 until the tax is abolished.
“So probably if God permits, on the 9th the demonstration will still come off. Unless they tell us that they are going to abolish it,” he said
