We’ll scrap luxury vehicle tax - Mahama

Former President John Dramani Mahama says the National Democratic Congress (NDC) will abolish the luxury vehicle tax if voted back into power in 2020.

We’ll scrap luxury vehicle tax - Mahama

According to him, the decision by the Akufo-Addo government to introduce such a levy was ill-conceived.

Mahama made the statement while addressing some drivers during his road safety tour in Accra on Thursday.

He argued that the amount of revenue raised as of now is not even enough for the tax to be sustained.

He said the NDC will scrap the policy if the party wins the 2020 general elections.

“Not too long ago, the government introduced the luxury vehicle tax. This tax was not well thought through before it was rolled out. They should have exempted all commercial vehicles,” Mahama said.

“There are commercial vehicles without the yellow plates, but rather white plates yet they carry commercial goods. Once they exceed three litres, they are charged this luxury tax. This has brought untold hardship on some of the drivers especially those who work for the companies and others.

“Just recently, I heard that government has only been able to raise GHC 25million from the luxury tax if that is the case, then they should abolish it. If they don’t, we the NDC government will abolish it when we come into power,” he added.

Between August and December last year, the government has collected some GH¢21.3 million in taxes from the use of vehicles with engine capacities of 2.9 litres and above.

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