Three groups– Vehicle and Asset Dealers Association, Coalition of Economic Association of Ghana and Coalition of Social Justice have hinted of a massive demonstration against the controversial Luxury Vehicle Levy on July 9.
According to the groups, the Levy which took effect on August 1, 2018, is collapsing the businesses of car dealers, bringing untoward hardships on Ghanaians.
Under the new tax regime, the government tax of GH¢1,000-GH¢2,000 has been imposed on non-commercial vehicles with a capacity of 3.0 litres and above. Also, there is a review of PIT to include an additional band of GH¢10,000 and above per month at a rate of 35% and downward adjustment discretionary expenditures.
Addressing journalists in Accra on Wednesday, the Secretary to the Vehicle and Asset Dealers Association, Clifford Ansu the levies are affecting their businesses gravely.
“It is affecting our businesses in the way that the cars that we have already imported into the system people are not patronising, the engines that we have also imported into our shops people are not patronising, because they know when they buy them and they go to the DVLA to renew their roadworthy certificate they are going to pay so much and there’s one thing also if your engine is about 3.0 and you decide to change it to 2.5 the law will catch you, the law will not spare you and you are going to be prosecuted and these things, in fact, are hindering our businesses,” Mr Ansu said.
He said if the government doesn’t rescind the implementation of the Levy, they are going to hit the street on July 9, saying: “We know they are not going to listen.”
“We shall continue to press on until our concerns are addressed.”
Meanwhile, the presidential candidate of the National Democratic Congress (NDC) John Dramani Mahama, has said he will abolish the luxury vehicles tax introduced by the government to tax vehicles.
With many complaining about the impact of the tax on their operations, especially commercial drivers and small business owners who use pick-up vehicles, Mr Mahama said the next NDC administration will scrap the tax if the government does not abolish it before 2020.
Speaking to executives and drivers of the Neoplan station local GPRTU in Accra, Mr Mahama argued the new tax is itself not generating that much revenue and wondered why the government would not scrap it.