It has also started the National Housing and Mortgage Finance Initiative to provide quality housing for citizens, starting with public and civil servants.

Two of the schemes under the initiative — the National Housing and Mortgage Scheme (NHMS) and the Affordable Housing Real Estate Investment Trusts (REITs) — have already started.

The Minister of Finance, Mr Ken Ofori-Atta, announced these initiatives in Parliament yesterday when he presented the government’s mid-year budget review.

Luxury vehicle

The Luxury Vehicle Tax was introduced in July last year to levy vehicles with big engine capacities, with those having capacities of between 3.0 and 3.5 litres paying an annual tax of GH¢1,000; those with capacities of 3.6 to 4.0 litres paying GH¢1,500 and those with 4.1 litres and above paying GH¢2,000.

According to the government, the introduction was in line with the Sustainable Development Goals (SDGs) to control emissions and reduce their impact on climate change.

However, in his presentation yesterday, Mr Ofori-Atta said: “We have noted suggestions from the general public on the implementation of this tax. As a listening government, we are proposing to the House the withdrawal of the levy.”

He noted that the government would continue to improve tax compliance, expand the tax net and explore other innovative sources of raising revenue.