How To Calculate Car Duty In Ghana
Buying a brand new vehicle in Ghana or from outside the country could cost one a very huge amount of money as a lot of the workers in Ghana are either low or middle income earners.
Due to this, the best option is to import a used vehicle from outside the country at a relatively cheaper price.
This doesn’t mean it doesn’t come with its own price.
To acquire a new vehicle or a relatively used one from abroad, payment of duty must be done before the car is released to the buyer.
The clearing of the vehicle comes to play once it has arrived in the country.
A Ghana import duty calculator will usually base the duty rates on the CIF (Cost Insurance Freight).
The CIF is calculated as;
CIF= CARGO VALUE + FOB + SEA FREIGHT/ TRANSPORT
CIF stands for Cost Insurance Freight
FOB stands for Free on Board
No one is exempted from payment of duties except the President, state of institutions and diplomatic missions.
For Vehicle Duty Calculation, the purchase price, manufacturer’s price at the time the car was manufactured is needed.
Depending on the number of years the car has run, the customs office applies depreciation.
For instance; if a car was bought at the first purchase price of GH₵12,000 in 2012 which is more than 5 years ago, a 30% rebate is given by the government.
It will attract an extra 50% depreciation after which it will come down to Free on Board (FoB) then the current exchange rate is applied before the freight and insurance is considered.
Once a consignee has the title and bill of lading of the vehicle, they can pay duty before it arrives.
It is always advisable and important to check the duty of the vehicle you are purchasing to know if you can afford before proceeding with the decision.