Owners of luxury vehicles with engine capacities of 3 litres or more will now pay an annual tax on their vehicles starting August 1, 2018, according to the Ghana Revenue Authority (GRA).
A couple of weeks ago, Finance Minister, Ken Ofori-Atta during the presentation of the Mid-year Budget Review in Parliament, announced that as part of government's efforts to bridge the gap in revenue for the first half of the year [2018], there is going to be the introduction of luxury vehicle tax.
Vehicles with engine capacities of 3.0 – 3.5 litres will attract an annual tax of 1,000 Ghana cedis; those with engine capacities of 3.6 – 4.0 litres will pay 1,500 cedis annually; while 4.1 litres and above are to pay an annual tax of 2000 Ghana cedis.
Mr Ofori-Atta was quick to add that commercial vehicles will not be included in the levy.
“Commercial vehicles will be exempted from this policy," he indicated.
Speaking in an exclusive interview with Kwami Sefa Kayi on PeaceFM's "Kokrokoo" Show Monday, Commissioner-General of the GRA, Emmanuel Kofi Nti, disclosed that the DVLA will start collecting the 'luxury tax' next month.
"Those already using the vehicles in the country will pay when they are going to renew their roadworthy certificate," he revealed.
In a related development, government expects to rake in at least 300 million cedis in revenue from taxes on luxury vehicles by the end of this year.
The figure was disclosed when Parliament passed the four bills approving the taxes introduced by the government.
Source: Rebecca Addo Tetteh/Peacefmonline.com
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You have said it all. I'm more than regretted . So sad.
REPAIR AND MAINTAINED THE ROADS AND WE WILL DRIVE 1.2 LITRE CARS. THESE CARS ARE DERIVED DEMAND OF OUR BAD ROADS AND NOT MEANT TO BE LUXURIOUS. 'TOOLS'
Nothing is free. Social interventions will be and should be paid for. Those who shouted free education were making genuine noises but they will have to pay for it one way or the other. We should not be under an illusion that the ordinary person will not be paying this tax. The ordinary person will pay double or triple fold and I will explain to you. The rich are those who own businesses, they are those who are linked to the political powers that be, they are those who control money flow and its circulation. Therefore if this tax is slapped on them, they will only increase prices from their printing presses, their restaurants, farms, increase contract prices for roads, construction and so on. they will increase prices on their apartment blocks. Now those who patronise these produce are the ordinary person. If prices increase generally, the ordinary person will be hit by inflation them two years down the line the cedi will devalue to the extent that more will have to be printed. Oh Lord the ordinary person will have to pay even more for their goods. We do not need a professor of Economics the explain or understand this.
CAN THIS TAX NOT BE DESCRIBED AS A NUISANCE TAX ? I AM HIGHLY DISAPOINTED PAA. AFTER PAYING 35% INCOME TAX THEN YOU PAY THIS TOO ON YOUR CAR ? SERIOUSLY I AM SAD WITH NPP. I THOUGHT THEY WILL THINK OUTSIDE THE BOX. SAD SAD SAD
The biggest mistake I have made in my life is voting for npp. God have mercy.
This is absolute ***barred word***.
Is this not going to be double taxation on selected few. At the point of buying the cars if within country, one is made to pay sales tax. Where the car was imported, one is mandated to pay Import Duties. How come you are placing this additional tax on people. These cars are certain time bought not for the luxury of it but to protect one's self against the bad guys on the road. Desperate NPP that has messed up with everything is look for escape route. We shall not pay a dime.