Government has proposed to introduce a new levy on luxury vehicles in the country, in a bid to ramp up revenue mobilisation to meet the revenue targets for 2018, after revenue failed to meet targets in the first five months.
The levy will be applicable to vehicles with engine capacities of 3.0 litres and above and will be paid on first registration and subsequently on annual renewal.
Mr. Ken Ofori Atta, Minister of Finance, made the announcement on the floor of Parliament when he presented the mid-year Budget Review for 2018, on Thursday.
He said commercial vehicles will however be exempted from this new policy.
“We propose to introduce a luxury vehicle levy on vehicles with engine capacities of 3.0 litres and above,” he stated.
Aside this policy which will affect those incomes high enough to afford luxury vehicles, government will also introduce an additional band to the existing five-band graduated tax rate for individuals in the country.
The additional band, he said, was to make the rates more equitable in line with best practice.
“Hence a 35 percent income tax will be applied to incomes over GH¢10,000.00 per month,” he said.
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