Gov’t imposes tax on luxury vehicles

BY: Graphic.com.gh

The Minister of Finance, Mr Ken Ofori Atta has announced the imposition of a luxury vehicle import tax as part of a new policy to help raise more revenue.

He said the tax would be imposed on luxury vehicles with the capacity of 3.0 litres and above.

Commercial vehicles are however exempted from the policy.

Reading the mid-year budget review on Thursday, Mr Ofori Atta said the tax would be paid at registration and subsequently at annual renewal.

High network income tax

Ghana currently has five income tax rates for individuals and government is introducing an additional one to make the risk more equitable, he said.

Mr Ofori Atta said in line with this, "a 35 per cent tax would be applied to incomes of over Ghc10,000 and above per month. 

"We are reviewing personal income tax to include an additional Ghc10,000 and above per month at the rate of 35 per cent," he said.

Read also: Minority brands Ofori-Atta 'Minister of Loans'

He said the measures were to ensure that the country meets its fiscal deficit target of 4.5 per cent and ensure that the country exit the International Monetary Fund (IMF) programme.

Related: No increase in VAT - Ken Ofori Atta

"We are converting the National Health Insurance of 2.5 per cent to a strict levy of 2.5 per cent. Mr Speaker, we are converting the GETFund Value Added Tax rate of 2.5 per cent to a strict levy of 2.5 per cent."

"Mr Speaker, VAT will thus be maintained at 12 and a half per cent.

Related: All eyes on Finance Minister as he presents mid-year budget review today.

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