Ghana has projected a $63.4 million (about GHS300 million) additional yearly revenue from a new tax regime on luxury vehicles which collection commenced yesterday, August 1.
According to a statement issued by the Ghana Revenue Authority, the taxes will only affect cars with engine capacity above 2950 or 3.0 and above.
The revenue authority stated that the new tax initiative required that vehicles with engine capacity of 2950 to 3549 capacity would pay GHS1,000 ($208) while others with engine capacity of 3550 to 4049 will pay GHS1,500 ($312).
Also, the fiscal measure also requires that engine capacity above 4049 will pay GHS2,000 ($417).
It would be recalled that the Ghanaian Government had harped on the imperativeness of boosting the nation’s revenue generation capacity when it inaugurated the present Board of the revenue agency in May 2017.
In an address after administering the Oaths of Office and of Secrecy on the eight-member board led by Mr. Harry Owusu, the Minister of Finance, Mr Ken Ofori-Atta, reminded the members that domestic revenue mobilization was a key component of government’s policy and that tax revenue mobilization had become increasingly important for sustaining investments in education, health, and infrastructure, among other key sectors.
The minister tasked the Board to be innovative in revenue administration and to live up to its vision, that is “to be a world class revenue administration recognized for professionalism, integrity and excellence.”
