A new National Democratic Congress (NDC) government will abolish the luxury vehicle tax introduced by the Akufo-Addo government, presidential candidate Mr. John Dramami Mahama has said.

He indicated that the levy was ill-conceived. To him, the levy has overburdened the ordinary commercial driver whose vehicle possesses the white number plate.

He opined that the levy has not been able to raise enough revenue to make the levy sustainable.

Speaking to some drivers during his road safety tour in Accra on Thursday, Mr. Mahama assured the drivers his administration will scrap the levy.

“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. There are commercial vehicles without the yellow plates, but rather white plates yet they carry commercial goods. Once they exceed three liters, 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.”

The Luxury Vehicle Tax was introduced to help the government raise more revenue by taxing the wealthy a little more.

Vehicles with engine capacities of 3.0 – 3.5 liters will attract an annual tax of 1,000 Ghana cedis; those with engine capacities of 3.6 – 4.0 liters will pay 1,500 cedis annually; while 4.1 liters and above are to an annual tax of 2000 Ghana cedis.

Commercial vehicles are, however, exempt from the luxury vehicle tax.


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