An approved tax on owners of luxury vehicles with engine capacity of 2,950 cubic centimeters and more will commence on Wednesday, August 1, 2018, Ghana Revenue Authority (GRA) has said.

A statement released by the GRA, Monday, said the Driver and Vehicle Licensing Authority (DVLA) has been authorized by law to collect the levy on behalf of the government.

“The levy shall be paid on the registration of vehicles and subsequently on or before the annual renewal of the roadworthy certificate of such vehicles”, the statement in part read.

Per the tax components approved by the Parliament of Ghana, owners of luxury vehicles with engine capacities of 2,950 to 3,549 cubic centimeters will pay an annual levy of GH¢1,000.00 while those with engine capacities of 3,550 to 4,049 cubic centimeters will an annual levy of GH¢1,500.00.

Further more, owners of luxury vehicles with engine capacities above 4,049 cubic centimeters will pay an annual levy of GH¢2,000.

The levy, according to the GRA is also imposed on vehicles existing prior to the passage of the law with the above listed cubic centimeters.

Vehicles whose road worthiness certificates have already been renewed prior to the passage of the Law luxury vehicles will pay the levy starting from their next renewal date in 2019, the statement in part added.

Tractors, ambulances, and commercial vehicles, are however, exempted from the Luxury Vehicle Levy.