Ghana’s Finance Minister, Ken Ofori-Atta proposes the withdrawal of luxury vehicles levy

The Ghanaian government is proposing to Parliament the withdrawal of the luxury vehicle tax introduced in 2018.

Ghanaian government wants to scrap luxury tax

Presenting the 2019 mid-year budget review in Parliament, Finance Minister, Ken Ofori-Atta said the government is making such a proposal because of the concerns raised over the tax since its introduction.

“Government in 2018 introduced the Luxury Vehicles Levy to raise revenue. We have noted suggestion 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. We will continue to improve compliance, expand the tax net and explore other innovative sources of raising revenue,” he said.

Earlier this month, the Minority in Parliament called for the removal of the luxury vehicle tax which it deems as “economically inefficient.”


According to them, the government had caused hardship for many Ghanaians through the “back door” with regards to the 5% increment in VAT.

In a statement, the Minority said “it is the expectation of the people of Ghana, that such subterfuge and shenanigan will not be repeated…Ghanaians expect the outright withdrawal/removal of the economically inefficient luxury vehicle tax.”

The levy was introduced during the 2018 midyear budget review, which took effect in August 2018 despite opposition from various groups.


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