VAT changes

There has been amendments to the VAT scheme some of which include:

a) Crude oil and hyrocarbon products: Chemicals imported

by the Tema Oil Refinery for use in the processing

of crude oil into petrol, etc. are now exempted from

VAT

b) Pharmaceuticals: Raw materials imported by local

manufacturers for the manufacture of exempt

pharmaceutical products are now exempted from import

VAT. To qualify for the exemption there should a

certificate by the Registrar of the Pharmacy Board.

c) Books - Ghana Publisher Association: The main raw

materials for the production of books are now

exempted from import VAT. The materials involved are:

I) Bond/Newsprint, ii) Book cover papers, iiii)

Lithofilm and iv) Lithoplates. There should be

certification by the Ghana Publishers Association.

d) Vehicles: The following rates apply

Vehicles Import VAT Special

Duty Tax

1. Ambulances Free Exempt Nil

2 Motor cars including

estate cars:

a) of a cylinder

capacity not

exceeding 1900cc 10% Exempt Nil

b) of a cylinder

capacity exceeding

1900cc but not

exceeding 2500 cc 10% 17.5% Nil

c) of a cylinder

capacity exceeding

2500cc 10% 17.5% 17.5%

3. Motor vehicles designed

to carry ten (10)

or more persons (eg.

buses and coaches) Free Exempt Nil

4. Motor vehicles for the

transportation of goods

such as trucks, tippers

and vans Free Exempt Nil

5. Vehicles specially

designed for travelling

on snow; gold cars

and similar vehicles 25% 17.5% 17.5%

6. Agricultural Tractors

of HS code 87.01 Free Exempt Nil

Ghana Review will like readers to note that the above

does not include penalties which are charged on over-aged

vehicles.

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