The Vehicle and luxury tax issue over the recent weeks have recieved much attention as a result of the new government decision to levy taxes on vehicles that qualify to be in the Luxury category. This initiative spear headed by the Finance Ministry is one that has been received by the public with disappointment and what they describe as unfair to vehicle owners across the country.
Mr. Eric Kyei Boateng who is the chairman of the vehicle and car asset dealers association in an interview with morning show host Osikani Frimpong Manso expressed worry on the already huge taxes levied on them hence they are running at losses in their businesses.
A meeting has been scheduled with the Finance Ministry where we will share our ideas and thoughts on the luxury tax imposed on us this coming Thursday. This meeting seeks to address the issues of their association and he promised that if their views and expectations are not met, the 2020 polls will be a good platform for them to decide whether to continue with this government or elect a new government.
Hon.Ken Ofori Attah, the Minister of finance said that they are welcome to any issues and concerns raised by the association.
The Parliament of the Republic of Ghana has passed the Luxury Vehicle Levy to impose an annual levy on vehicles with high engine capacities. The implementation of this Law takes effect from Wednesday, 1st August, 2018.
Vehicles with engine capacity of two thousand, nine hundred and fifty (2950) Cubic Centimeters and more are required to pay respective levies.
Imposition of Levy
|No.||ENGINE CAPACITY (CC)||Levy (GH¢)|
|1||2950cc – 3549cc||GH¢1,000|
|2||3550cc – 4049cc||GH¢1,500|
The Driver and Vehicle Licensing Authority (DVLA) is authorized by the Law to collect the 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.
Source: Kingdom Fm, Takoradi.