Luxury vehicle levy takes off today

Mr Emmanuel Kofi Nti,CommissionerGeneral,GRA

Mr Emmanuel Kofi Nti,CommissionerGeneral,GRA

The implementation of the Luxury Vehicles Levy begins today, August 1 2018, the Ghana Revenue Authority (GRA) has announced.

The levy, passed by parliament, requires vehicles with high engine capacities capacity of 2950 Cubic Centimetres (cc) and more to pay annual levies.

Vehicles with engine capacity from 2950cc to 3549cc are to pay GH¢1,000; from 3550cc to 4049cc will pay GH¢1,500 while those above 4049cc will pay GH¢2,000.

A statement issued by the GRA Commissioner General on Monday said the Driver and Vehicle Licensing Authority (DVLA) was authorised by the Law to collect the levy on behalf of the government.

“With effect from Wednesday, August 1, 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 cubic centimetres” the statement said.

However, it said 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.

Exempted from the levy are tractors ambulances and commercial vehicles with the capacity to transport more than ten persons; commercial vehicles for the transport of goods and other exemptions as may be prescribed by the Minister.

The levy was announced weeks ago by the Finance Minister Ken Ofori-Atta during the presentation of the mid-year budget review in parliament.

The announcement attracted mixed feeling from the public. Some persons questioned the policy, arguing that such cars were already paying huge taxes through importation and forced to drive on bad roads.

By Times Reporter

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