New Vehicle taxes take off July One

Accra, July 2, GNA - The Internal Revenue Service (IRS) on Wednesday announced that it has given a one month grace period ending July 31 to commercial drivers to purchase the new Vehicle Income Tax (VIT), which came into effect from July 1, 2003.

The system was introduced under the Legislative Instrument 1727, that empowers the IRS to implement the Sticker System as a new mode of payment of income tax on quarterly basis by commercial transport operators to replace the current weekly payment.

Mrs. Janet Opoku-Akyeapong, Commissioner of IRS, who disclosed this at a seminar with the Regional Commanders of Police on the role of the police in the VIT sticker system, said the new tax was reduced drastically to encourage transport operators to patronize the system.

She said the quarterly payment has become necessary because the weekly one has been bedevilled with many negative factors, which have made the mobilization of optimum revenue collection impossible from an otherwise potentially rich sector.

The Commissioner said the seminar was convened because the IRS recognizes and appreciate the role the police could play in enforcing tax laws and urged them to co-operate with the service to ensure the success of the programme.

"The success or failure of the implementation of the system depends, to a large extent on activities of the police. The arrest and prosecution of defaulting transport owners and drivers are best executed by the police, hence any lapses on their part will result in a huge loss of revenue to the state."

Mr Kwame Adjei-Djan, Deputy Commissioner in-charge of Legal Services, said defaulters would be prosecuted and on summary conviction, the person is liable to a fine not less than 500 thousand cedis and one million cedis maximum or to a term of imprisonment of not less than two months and not more than three months.

He therefore, urged all commercial drivers to ensure that they purchase the tax and display their stickers on the windscreen to avoid prosecution.

Mr David Oppong, Chief Inspector of Taxes, said the vehicles were grouped into four categories and the stickers were printed in four colours to eliminate fraud.

He said for example, Taxis/Hiring cars are in category one, Trotro buses, category two, commuters (long distance vehicles), category three, while heavy-duty vehicles are in the fourth category.

Chief Supt. David Tandoh, Commander of Central MTTU, was grateful to the Service for the co-operation and pledged the support of the police for the system to ensure its success.

He advised that IRS should intensify public campaign in the various local languages so that the message would go down well with the people to avoid misinformation.