CEAG to demonstrate against luxury vehicle levy

The Coalition of Economic Association Ghana (CEAG) has announced that it would embark on a demonstration against luxury vehicle levy in Accra, on July 9, 2019.

The CEAG said the action dubbed, ‘Kum Yen Premo Demo’ would be against what it termed government’s lukewarm attitude regarding the call for the scrapping of luxury vehicle levy (Act 969), which was introduced by Parliament and assented in July, 2018.

The group consists of Concerned Drivers Association of Ghana, Ghana Committed Drivers Association, True Drivers Union, Concerned Spare Parts Dealers Association of Ghana and Consumer of Petroleum Consumers of Ghana (COPEC) and Vehicle and Asset Dealers Association of Ghana (VADAG)

The Secretary of the VADAG, Mr Clifford Ansu, stated these at a press conference in Accra yesterday, stating that the luxury tax was affecting the business of members.

‘’The effect of this policy has, however, been so detrimental to the car selling industry nationwide. Some owners of these vehicles are resorting to ‘’Goro boys’’ at the premises of the DVLA for fake and fictitious road worthy stickers, just to drive around thereby denying the government revenue this policy seeks to generate for the state, ’’he added

He said VADAG on March 7, 2019, staged and presented a petition to various government agencies such as the Office of the Chief of Staff at the Presidency, Speaker of Parliament, the Ministry of Transport and Ministry of Finance as well as Parliamentary Committee on Finance, Roads and Transport, but to no avail.

Mr Ansu said the tax, was imposed on vehicles such as Toyota Avalon, articulated trucks, toilet trucks, refuse trucks, which could not be compared with luxury cars such as Rolls Royce, Land Cruiser V8, and G-Wagon.

He stated that the Finance Ministry, which introduced the policy, failed to hold broader consultation with stakeholders in the transport industry.

Mr Ansu said “already engines with capacities ranging from 2.9 to 4.5 attract much duties at the port of entry, yet they were stacked in their stores and thereby reducing the rate of turnover”.

He said thousands of luxurious vehicles owners were expected to hit some roads in Accra to call for the abolishment of the ‘killer’ tax by government.

Mr Ansu said former President John Dramani Mahama and Mr Hassan Ayariga, founder and leader of All People’s Congress have agreed to join the demonstration.

The chairman of the VADAG, Mr Eric Kwaku Kwarteng, said there was the need to abolish the tax.

Mr Joseph Osei Yeboah, a former independent presidential candidate, who is a consultant of VADAG, called on government to listen to the cry of members of CEAG.

He said most cars have been parked at garages as a result of the levy and billions of Ghana Cedis the dealers lose.


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