Tax on Luxury Vehicles Commence Today – GRA

Owners of luxury vehicles in the country, from today August 1, are required to pay an annual tax on their vehicles.

This was announced by the Ghana Revenue Authority (GRA) in a statement issued yesterday.

According to the statement, vehicles with engine capacity of 2950 Cubic Centimeters and more are required to pay respective levies, under the new regime.

Whiles owners of vehicles with engine capacity of 2950cc to 3549cc are required to pay a levy of GH¢1,000, those with 3550cc to 4049cc engine capacity are required to pay GH¢1,500.

Also, a levy of GH¢2,000 has been imposed on vehicles with engine capacity above 4049cc.

The levy, according to the statement, would be paid on the registration of vehicles and subsequently on or before the annual renewal of the roadworthy certificate of such vehicles.

The Minister for Finance, Ken Ofori Atta is reported to have hinted government’s decision to impose a levy on luxury vehicles during the mid-year budget review.

This was later followed by the passage of the levy in parliament, where an annual levy was imposed on vehicles with high engine capacities.

According to the statement, vehicles existing prior to the passage, are also required to pay the levy.

“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,” the statement read.

Meanwhile, some categories of vehicles has been exempted from the levy.

They include tractors, ambulances, commercial vehicles that has the capacity to transport more than ten persons, and vehicles used in transporting goods.

By: Emmanuel Yeboah Britwum