Luxury Vehicle Tax takes effect August 1
| Updated Aug 01, 2018 at 10:35am
The law imposing an annual tax on vehicles with high capacity engines starts today.
This follows parliament’s approval of the tax proposed by the Finance Minister when he delivered the mid-year review budget.
The Ghana Revenue Authority (GRA) says the tax affects vehicles with engine capacity of 2950 Cubic Centimeters and more, and that the Driver and Vehicle Licensing Authority (DVLA) is the authorised body to collect the levy ranging from GH¢1,000.00 (one thousand cedis) to GH¢2,000.00 (two thousand cedis) on behalf of Government.
A statement issued by the Commissioner-General of the GRA, Kofi Nti said the tax also affects vehicles of the listed capacities existing prior to the passage of the law.
Imposition of Levy
2950cc – 3549cc – GH¢1,000
3550cc – 4049cc – GH¢1,500
Above 4049cc – GH¢2,000
The following categories of vehicles are exempt from the levy:
- Commercial vehicles that have the capacity to transport more
than ten persons;
- Commercial vehicles for the transport of goods;
- Other exemptions as may be prescribed by the Minister responsible for Finance.