Ghana imposes new tax on luxury vehicles according to engine size, and the collection of the newly introduced taxes is to commence today Wednesday, 1st of August.
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, reports Citinewsroom.
The new tax initiative states that vehicles with engine capacity of 2950 to 3549 capacity will pay GHS1,000 ($208) while vehicles with engine capacity of 3550 to 4049 will pay GHS1,500 ($312).
Engine capacity above 4049 will pay GHS2,000 ($417).
Higher taxes are usually charged to high emission vehicles because of their harmful pollution to the environment, the taxes are to dissuade people from buying them but in the case with Ghana, the government is said to be using it to raise revenue.
The tax was introduced to boost revenue in the nation and government is expected to raise about GHS300 million from the policy.
On the other hand, the situation is same everywhere in the world just under different guises.
Government always charge higher taxes on big engine cars under the guise of environmental pollution and protection but in the real sense, it’s just another means of revenue generation.
Bravo to the Ghanaian government for calling it what it is. “Revenue Generation”