1. What is Motor Vehicle Duty?

Motor Vehicle Duty is a tax imposed by the Ghana Revenue Authority (GRA) on imported and locally manufactured vehicles. The duty is calculated as a percentage of the vehicle's value and varies depending on the vehicle type and other factors.

2. How Does the Calculator Work?

The calculator uses the simple duty formula:

Where:

• \( Value \) — The assessed value of the vehicle in Ghana Cedis (GHS)
• \( Rate \) — The applicable tax rate as a percentage

Explanation: The calculator multiplies the vehicle value by the tax rate (expressed as a decimal) to determine the duty amount.

3. Importance of Duty Calculation

Details: Accurate duty calculation is essential for importers, car dealers, and individuals to understand their tax obligations and properly budget for vehicle purchases.

4. Using the Calculator

Tips: Enter the vehicle value in GHS and the applicable tax rate as a percentage. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How is vehicle value determined for duty purposes?
A: GRA typically uses the CIF (Cost, Insurance, Freight) value for imports or the manufacturer's price for locally assembled vehicles.

Q2: Are there different rates for different vehicle types?
A: Yes, rates vary by vehicle type (passenger, commercial), engine size, age, and fuel type. Always confirm the exact rate with GRA.

Q3: What other charges apply besides duty?
A: Additional charges may include VAT, NHIL, GETFund levy, ECOWAS levy, and processing fees.

Q4: Can I pay duty in installments?
A: Generally no, full duty payment is required before vehicle clearance. Some exceptions may apply for special cases.

Q5: Where can I get official duty rates?
A: Current rates are available at GRA offices or on their official website (www.gra.gov.gh).