Luxury vehicle tax takes effect August 1
| Updated Jul 31, 2018 at 3:05pm
The Ghana Revenue Authority (GRA) says the implementation of the law to levy vehicles with high engine capacities takes effect Wednesday, 1st August 2018.
Under the new tax regime, vehicles with engine capacity of 2950 Cubic Centimeters and more are required to pay tax.
In a statement, the Commissioner-General of the GRA, Kofi Nti said owners of such vehicles will be paying between GH¢1000.00 and GH¢4000.00. 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 road worthy certificate of such vehicles.
The levy is also imposed on vehicles existing prior to the passage of the Law.
Also, vehicles whose road worthiness 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 exempted from the levy, tractors, ambulances, commercial vehicles that have the capacity to transport more than ten persons, commercial vehicles for the transport of goods and other exemptions as may be prescribed by the Minister responsible for Finance.
In a related development, the Programme Officer of ISODEC, Bernard Anaba says the tax on luxury cars will in a way limit the use of vehicles which consume much fuel and promote the use of low fuel consumption vehicles.
Speaking with GBC’s Nana Ama Omari, Mr. Anaba said high fuel consumption vehicles drain the country's foreign exchange therefore the tax would enable government cut down on money spent on fuel imports and raise more revenue for the country.