{"id":612393,"date":"2019-05-02T16:39:55","date_gmt":"2019-05-02T16:39:55","guid":{"rendered":"<br><div>\n<figure class=\"fff post-thumbnail\" itemprop=\"associatedMedia\" itemscope=\"\" itemtype=\"http:\/\/schema.org\/ImageObject\"><img class=\"post_layout_5_img\" src=\"https:\/\/cdn.ghana-mma.com\/2019\/05\/luxury-vehicles.jpg\" alt=\"Government\u2019s luxury vehicle tax h"},"modified":"2019-05-02T16:39:55","modified_gmt":"2019-05-02T16:39:55","slug":"governments-luxury-vehicle-tax-has-serious-challenges","status":"publish","type":"post","link":"https:\/\/www.ghanamma.com\/2019\/05\/02\/governments-luxury-vehicle-tax-has-serious-challenges\/","title":{"rendered":"Government&#8217;s luxury vehicle tax has &#8216;serious challenges&#8217;"},"content":{"rendered":"<p><\/p>\n<div>\n<figure class=\"fff post-thumbnail\" itemprop=\"associatedMedia\" itemscope=\"\" itemtype=\"http:\/\/schema.org\/ImageObject\"><img decoding=\"async\" class=\"post_layout_5_img\" src=\"https:\/\/cdn.ghanamma.com\/2019\/05\/luxury-vehicles.jpg\" alt=\"Government\u2019s luxury vehicle tax has \u2018serious challenges\u2019 \u2013 Analyst\"\/><\/figure>\n<div class=\"mom-ads-wrap  \">\n<div class=\"mom-ads ads-layout-rotator ads-rotator-id-821\" style=\"width:728px; height:90px;\">\n<div class=\"mom-ads-inner\">\n<div class=\"mom-ad\" data-id=\"1236\" style=\"width:728px; height:90px; \">\n<img loading=\"lazy\" decoding=\"async\" class=\"appear\" src=\"https:\/\/cdn.ghanamma.com\/2019\/04\/Say-yes-to-ads-Banner-728-X-90.jpg\" alt=\"Right Below Featured Image\" width=\"728\" height=\"90\"\/>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p>A tax analyst, Leonard Shang-Quartey has said that the government\u2019s newly introduced luxury vehicle tax is fraught with \u201cserious challenges\u201d that need to be checked.<\/p>\n<p>He argued that to the extent that the proceeds collected from the tax will go to service debts, it will be a challenge for those affected to accept it and pay willingly.<\/p>\n<p>Speaking on the Tax Dialogue Series on the\u00a0<strong>Citi Breakfast Show<\/strong> on Thursday, Mr.\u00a0Shang-Quartey\u00a0who is the Coordinator of the Tax Justice Coalition said although the tax appears to be progressive, it does not ultimately benefit those who pay.<\/p>\n<blockquote>\n<p>\u201cIf you look at the luxury vehicle tax, on the surface, you will think it is a progressive tax or a re-distributive tax. The point is about taxing those who can afford those high capacity vehicles and if you are taxing them it means that you can use those proceeds to support other services. But if you put it into context, you will realize that it has several challenges and several problems with it because what is even the motivation behind this tax?,\u201d he quizzed.<\/p>\n<\/blockquote>\n<p>He said the best situation was to have the government invest the collected monies into productive sectors of the economy that will yield significant returns.<\/p>\n<p>Mr.\u00a0Shang-Quartey said if payees of the luxury vehicle tax are aware of the infrastructure development and other socio-economic benefits their taxes are yielding, they will not challenge the payment of the tax.<\/p>\n<blockquote>\n<p>\u201cGovernment has the responsibility of servicing some of these debts that has accrued. o if you are imposing such a [luxury] tax and a chunk of it is going into debt servicing which is not progressive as against investing it into productive sectors of the economy, then you realize that there is a challenge. This tax is not going to build more schools, it is not going to be connecting roads, it is not going to help with the development of non-partisan youth development programs.\u201d<\/p>\n<p>\u201cThere is a lot of challenges with it. But if we can have that commitment from the government that the proceeds from these taxes to be earmarked for infrastructural development, or some other productive sectors of the economy, then maybe the resistance to it will be a bit minimal. Looking at what we have now, it has serious challenges,\u201d he said.<\/p>\n<\/blockquote>\n<p>Mr.\u00a0Shang-Quartey further noted that the tax could lead to a situation of double taxation as persons who are expected to pay the annual luxury vehicle tax may have already paid high duties at the port at the time of importation.<\/p>\n<p><strong>About the luxury vehicle tax<\/strong><\/p>\n<p>The luxury vehicle tax was introduced during the 2018 midyear budget review by the Finance Minister, Ken Ofori Atta.<\/p>\n<p>It affects vehicles with engine capacity above 3.0 litres, attracting an annual charge of between GHc1, 000 to Ghc2, 000.<\/p>\n<p>Seven Associations including the Vehicle and Asset Dealers Association in March 2019 embarked on a demonstration to protest the luxury vehicle levy.<\/p>\n<p>Members of the associations presented a petition to the Ministry of Finance expressing their misgivings over the tax.<\/p>\n<p>They said the tax was going to lead to the collapse of their business as more people were now unwilling to buy their vehicles of engine capacity of at least 3.0<\/p>\n<p><span class=\"ctx-article-root\"\/>  <\/p>\n<\/div>\n<p>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a style=\"display:none\" rel=\"follow\" href=\"http:\/\/megatheme.ir\/\" title=\"\u0642\u0627\u0644\u0628 \u0648\u0631\u062f\u067e\u0631\u0633\">\u0642\u0627\u0644\u0628 \u0648\u0631\u062f\u067e\u0631\u0633<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A tax analyst, Leonard Shang-Quartey has said that the government\u2019s newly introduced luxury vehicle tax is fraught with \u201cserious challenges\u201d that need to be checked. He argued that to the extent that the proceeds collected from the tax will go to service debts, it will be a challenge for those affected to accept it and [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":612394,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":["post-612393","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Government&#039;s luxury vehicle tax has &#039;serious challenges&#039; - Ghanamma.com<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ghanamma.com\/2019\/05\/02\/governments-luxury-vehicle-tax-has-serious-challenges\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Government&#039;s luxury vehicle tax has &#039;serious challenges&#039; - Ghanamma.com\" \/>\n<meta name=\"twitter:description\" content=\"A tax analyst, Leonard Shang-Quartey has said that the government\u2019s newly introduced luxury vehicle tax is fraught with \u201cserious challenges\u201d that need to be checked. 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