The Ghana Revenue Authority (GRA) has directed Real Estate Developers across the country to comply with the payment of the Vehicle Income Tax (VIT).
GRA has therefore given its backing to the Police Service to ensure that members of GREDA pay for the VIT sticker quarterly, since it forms part of the corporate taxes allotted to them.
Speaking in an interview with Adom Business News, the Chief Inspector of Taxes at the Public Relations Unit of the Ghana Revenue Authority, Bobie Ansah insisted that, GREDA is not exempted from the VIT since the law affects privately registered vehicles too.
Mr. Bobie Ansah stated that every payment made by the contractors will be credited to their accounts at the end of the year when they file their tax returns.
The directive follows a call by GREDA on GRA to clearly define the Vehicle Income Tax (VIT) law.
According to GREDA the law is being misapplied against its members by the police which is taking a toll on their operations.
The contractors said in many instances, trucks and water tankers carrying building materials to construction sites have been detained by the police, resulting in delays in operations and additional costs.
But briefing Adom Business News about the Vehicle Income Tax, Mr. Bobie Ansah explained that since the inception of the tax in 2003, only commercial transport owners were required to pay the VIT.
He noted however that, the system has been grossly abused.
“We discovered that most commercial drivers had changed from yellow to white plates, hence the decision to include private cars irrespective of one’s engagement in commercial activities or not”.
Attempts by Adom Business to contact officials of GREDA for more information proved unsuccessful.
Story by Afia Akyere/Adom News