Minister of Finance, Ken Ofori Attah, has revealed that government will soon impose tax on luxury cars with an engine capacity of 3.0 litres and above.
Presenting the mid-year budget review to parliament on Thursday, Mr Ofori-Atta said the luxury vehicles will attract a tax of between GHS1000 and GHS2000.
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“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.
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“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”, he stated.