The government of Ghana has imposed a new tax on luxury vehicles and the collection of the taxes would commence on Wednesday,August 1.
According to a press release issued by the Ghana Revenue Authority (GRA), under the new tax regime, vehicles with engine capacity of 2950 Cubic Centimeters and more are required to pay respective levies.
“The Driver and Vehicle Licensing Authority (DVLA) is authorised by the Law to collect the levy on behalf of Government. With effect from Wednesday, 1st August 2018, the levy shall be paid on the registration of vehicles and subsequently on or before the annual renewal of the roadworthy certificate of such vehicles, with engine capacities listed above,” GRA stated in the release.
CitiNewsRoom reports that the new tax initiative states that vehicles with engine capacity of 2950 to 3549 capacity will pay GHS1,000 ($208) while vehicles with engine capacity of 3550 to 4049 will pay GHS1,500 ($312).
Engine capacity above 4049 will pay GHS2,000 ($417).
My Joy Online further reported that the levy is also imposed on vehicles existing prior to the passage of the Law with the above-listed cubic centimetres.
Also, vehicles whose roadworthiness certificates have already been renewed prior to the passage of this Law in 2018 will pay the levy starting from their next renewal date in 2019.
Meanwhile, the following categories of vehicles are exempt from the levy:
c) commercial vehicles that have the capacity to transport more than ten persons;
d) commercial vehicles for the transport of goods;
e) other exemptions as may be prescribed by the Minister responsible for Finance.