The introduction of the luxury car tax is a good initiative by the Government of Ghana, Chief Executive Officer of Kingdom Group of Companies, Jonathan Amofa, has said.
According to him, in most developed countries such as India, such taxes have been introduced in order to enable the government rake in revenue for development.
He told Chief Jerry Forson on Ghana Yensom on Accra 100.5FM on Wednesday, 1 August that: “To the extent that the government of Ghana needs money to embark on development projects, I am for it.”
He added: “Anybody who is able to afford a luxury car should be able to afford to pay the levy, which, when compared to the price of the car, is just a peanut.”
Implementation of the tax started on Wednesday, 1 August 2018 as announced by the Ghana Revenue Authority (GRA).
An annual levy will be imposed on vehicles with high engine capacity of 2950 cubic centimeters and more.
The levy is as follows:
2950cc – 3549cc GH¢1,000
3550cc – 4049cc GH¢1,500
Above 4049cc GH¢2,000
The GRA, in a statement, said 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 as listed above.
The levy is also imposed on vehicles existing prior to the passage of the law with the above listed cubic centimeters.
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.