Take advantage of tax amnesty exercise to pay duties on smuggled vehicles - GRA urges undocumented vehicle owners
The Ghana Revenue Authority (GRA) has urged owners of uncustomed vehicles to take advantage of the annual tax amnesty policy to register and pay proper duties on such vehicles before September 30, 2024.
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The authority said if the owners of vehicles that were either smuggled into the country, using unapproved routes, or came in with temporary importation regime which allowed them 90-day stay, stepped forward, they would be pardoned and enjoy tax waivers.
It, however, warned that failure of owners of smuggled vehicles to comply with the tax amnesty exercise would be made to face the law.
“With the tax amnesty exercise beginning from August 1 to September 30, 2024, owners of smuggled vehicles who come forward will only have to pay taxes on vehicle import duties after the GRA has done tax assessment and the penalty will be waived,” the authority said.
Operations
Speaking at a capacity training workshop for the members of the Parliamentary Press Corp (PPC) in Accra last Friday, the Supervisor of the Vehicle Valuation Unit of the GRA, Justice N. M. Yadjayme, said “After the amnesty period, the preventive units of the GRA will undertake operations and once they find such vehicles on our roads, they will pick them up.
“The viceless will to be taken to any nearest customs office for tax assessment to be done for a 300 per cent penalty to be imposed. If the vehicles are over-aged, owners will only pay the over-aged penalty because it is part of the taxes they have to pay,” he said.
The workshop formed part of GRA’s broader tax education month initiative aimed at engage the media and other key stakeholders to help educate the public on the importance of tax compliance for national development.
Evading taxes
Mr Yadjayme said it was not illegal for dealers and owners to bring vehicles from Togo or Cote d’Ivoire, describing such act as “an importation”.
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He, however, said the GRA expected the owners of such vehicles to take them through approved routes and go to the customs to have such vehicles taken through proper procedure to clear them and pay taxes due.
“But most vehicle dealers and owners, in a bid to dodge the payment of duties of their vehicles, often resorted to the use of unapproved routes to smuggle such vehicles into the country.
“Others use temporary importation documents that allowed such vehicles into the country for a 90-daty period. They do not pay duty on such vehicles because they have an ECOWAS insurance bond covering them.
“But the period of stay will elapse and instead going back with such vehicles to country of origin, the vehicles stay because of those behind these acts are Ghanaians who bring these vehicles to evade paying taxes,” he said.
Friendly tax collection
The Deputy Commissioner of GRA in-charge of Operations, Daniel Edisi, said the authority had initiated a more customer-centric and collaborative approach to revenue collection as part of its efforts to meet national revenue targets.
The new strategy would replace the much-criticised “Rambo-style” tax compliance methods being used by the authority.
“It is now a bit of collaboration and education. Going forward, this is the strategy we are using and it is already gaining some advantages for us to be able to meet the target of end of the year,” Mr. Edisi stated.
Training
The Deputy Commissioner in-charge of Communications and Public Affairs, Florence Assante, said it was critical for the media to understand and convey the GRA’s new customer-focused approach to the public.
“Taxation is a bit technical and so you need to explain into details the essence of taxation and that is what we are trying to do.
“Now the GRA is customer-centric and please let us work together because without taxes, we cannot grow our nation and we cannot do anything,” she said.