Ghana to raise GHc300 million from taxing luxury vehicles

The government of Ghana is set to rake in at least 300 million cedis in revenue from taxes on luxury vehicles by the end of this year.

The tax, which forms part of the new policy measures introduced in the midyear budget review, is to help bridge the gap in revenue for the first half of the year [2018].

Owners of luxury vehicles with engine capacities of 3 litres or more will now pay an annual tax on their vehicles starting August 1, 2018, according to the Ghana Revenue Authority (GRA).

A couple of weeks ago, Finance Minister, Ken Ofori-Atta during the presentation of the Mid-year Budget Review in Parliament, indicated that as part of government's efforts to bridge the gap in revenue, there was going to be the introduction of luxury vehicle tax.

Vehicles with engine capacities of 3.0 - 3.5 litres will attract an annual tax of 1,000 Ghana cedis; those with engine capacities of 3.6 - 4.0 litres will pay 1,500 cedis annually; while 4.1 litres and above are to pay an annual tax of 2000 Ghana cedis.

Commercial vehicles will be exempted from this policy.