- 6 Marks
Question
In 2003, the Vehicle Income Tax Stickers (VITS) was introduced by way of LI 1727 and amended by Income Tax Regulations, 2016 (LI 2244).
Required:
Identify the key features of the VITS tax system.
(6 marks)
Answer
Key features of the VITS tax system include:
- VIT Stickers are mandatory for all commercial road vehicles.
- Stickers are to be purchased every quarter in advance and shall be valid only for that quarter.
- Stickers are to be displayed on the windscreens of all commercial vehicles as done with Insurance and Road Worthiness Certificates.
- The VIT Sticker system shall be enforced by the Police Service and monitored by the Ghana Revenue Authority.
- Taxpayers are required to file their tax returns at the end of each year since the payment for the VIT stickers is only payment on account.
- Stickers can be purchased by a Transport Association for its members.
- Specified rates are provided for various classes of commercial vehicles.
(One point for one mark. Maximum of 6 points = 6 marks)
- Tags: Income Tax Regulations, Vehicle Income Tax, VITS
- Level: Level 2
- Topic: Income Tax Liabilities
- Series: NOV 2019
- Uploader: Cheoli