The Minority side in parliament say they have been vindicated in their opposition to the introduction of the Luxury Vehicle Tax by the Akufo-Addo-led government.
This was after the Finance Minister, Ken Ofori-Atta announced the scrapping of the tax in parliament during the presentation of the mid-year budget reviews on Monday.
The Luxury Vehicle Tax was passed by parliament in 2018 as part of government’s efforts to increase revenue.
Owners of vehicles with engine capacity of two thousand, nine hundred and fifty (2950) Cubic Centimeters and more were required to pay levies ranging from GH¢1,000 to GH¢2,000.
The policy was met with opposition from minority members in parliament and the general public. The minority said the levy was just going to increase hardships faced by Ghanaians.
Describing the Akufo-Addo administration as a ‘listening government’, the Finance Minister revealed in parliament that the levy was going to be withdrawn.
“Government in 2018 introduced the Luxury Vehicles Levy to raise revenue. We have noted suggestions from the general public on the implementation of this tax and Mr. Speaker, as a listening Government, we are proposing to the House, the withdrawal of the levy.”
His announcement was met with loud chants of ‘we told you so’ from members of the minority in the chamber.
The minister however, added that government was still opened to exploring other avenues in raising funds.
He noted that “we will continue to improve compliance, expand the tax net and explore other innovative sources of raising revenue”.
Commenting on the issue on Joy FM’s Top Story, Member of Parliament for Bolgatanga Central, Isaac Adongo said the NPP government was doing no good but rather compounding the woes of citizens.
The Member of Parliament quoted American Civil Rights Leader, Malcom X, saying “you don’t stick a knife in a man’s back nine inches and then pull it out six inches and say you’re making progress”.
His comments were in line with the minister’s announcement of increases in various levies such as the Energy Sector Levy and the Call Tax.
