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Luxury Vehicle Tax kicks in today

The law imposing an annual tax on vehicles with high capacity engines starts today, August 1, 2018. This is according to the Ghana Revenue Authority following parliament’s approval of the tax proposed by the Finance Minister when he delivered the mid-year review budget.

According to the GRA, the tax affects vehicles with engine capacity of 2950 Cubic Centimeters and more, and that the Driver and Vehicle Licensing Authority (DVLA) is the authorized body to collect the levy ranging from GH?1,000 to GH?2,000 on behalf of Government.

No. Engine Capacity (CC) Levy (GH¢) 1. 2950cc – 3549cc GH¢1,000 2. 3550cc – 4049cc GH¢1,500 3. Above 4049cc GH¢2,000 A statement issued by the Commissioner-General of the GRA said “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 tax also affects vehicles of the listed capacities existing prior to the passage of the law.

“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.”

Exempted from the levy are;

– tractors; – ambulances; – 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.

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