Gabon abolishes Luxury Car Tax

Gabon has scrapped luxury car taxes that provided the State with $82,000 last year, ‘Gabon Review’ reports citing 2024 draft Budget Bill.

On the contrary, the budget bill imposed taxes on brand new vehicles and the measure is set to provide the State with $95,000 in revenues. The State did not collect taxes on brand new vehicles last year.

The previous regime of deposed leader Omar Bongo Odimba introduced luxury car tax in 2019 but decision was enacted the following year, the media notes. Insurance companies collected the taxes on behalf of the State, on motor vehicles with more than 10 fiscal horsepower, whether they are used for the land transport of people or goods, ‘Gabon Review’ reports.

Insurance companies until last year collected XOF20,000 ($33.3) per additional tax horse for new luxury vehicles aged less than 5, and XOF30,000 ($50) for those over 5 years old.