Parliament’s passage of the Luxury Vehicle Levy recently has mandated the Ghana Revenue Authority (GRA) to begin the collection of taxes on luxury cars beginning Wednesday, August 1, 2018.
The GRA, in a statement, said the taxes would only affect cars with engine capacity above 2950 or 3.0.
Vehicles with engine capacity from 2950 to 3549 are expected to pay GH¢1,000 cedis, while those with engine capacity from 3550 to 4049 would pay GH¢1,500.
Those with engine capacity above 4049 are expected to part with GH¢2,000.
Government expects to mobilise about GH¢300 million from the luxury car tax.
The Driver and Vehicle Licensing Authority (DVLA) is authorized by law to collect the luxury car 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.
The levy is also imposed on vehicles existing prior to the passage of the law with the above listed dimensions.
Thus, vehicles whose road worthiness certificates have already been renewed prior to the passage of this law in 2018 would pay the levy starting from their next renewal date in 2019.
Some vehicle types, however, are exempt from the new tax.
These include tractors, ambulances, commercial vehicles that have the capacity to transport more than 10 persons; commercial vehicles for the transport of goods; and other exemptions as may be prescribed by the Finance Minister.
By Samuel Boadi