The Vehicle and Asset Dealers Association of Ghana (VADAG), has called off the planned demonstration for the abolishment of the luxurious levy today following an engagement with the government.
This was after a meeting between members of VADAG and the government last Friday with an assurance that they would have a second look at the tax.
This was contained in a press release issued by the Chairman of the VADAG, Mr Eric Kweku Boateng and copied the Ghanaian Times.
The statement, therefore, entreated members of the VADAG to proceed to work as deliberations with government was continued.
“As an association, we are open to further deliberate with government on the best way(s) of making Ghana business friendly and engaging, high nuisance taxes will not only cause damage to businesses growth but also stall innovation and job creation,” he added in the statement.
The association had earlier filed a petition to stakeholders including former heads of state, diplomatic missions and civil society to put pressure government to scrap the tax on luxury vehicles.
Mr Boateng said the decision was agreed upon by the sub-association including VADAG, True Driver’s Union, Chamber of Petroleum Consumers(COPEC),Ghana Committed Driver’s Association, National Spare Parts Dealers of Ghana and Mr Jacob Osei Yeboah, former Independent presidential candidate.
The Ghanaian Times on June 29, this year, quoted Finance Minister, Ken Ofori Atta, as saying that some changes have been made to the Luxury Vehicle Tax Law, to lay to rest issues concerning its implementation.
The minister at a news conference in Accra, did not disclose further details on the issue, but added the details would be made known during the mid-year budget review scheduled for August.
However, the law has since been opposed by the coalition of car dealers and owners, who, in March this year staged a demonstration in Accra to register their disapproval.
Earlier this month, the coalition served notice of another demonstration to press home their message that the law, if implemented, would exacerbate the cost of their business.
The group members who were supposed to take part in the dismissed demonstration today consisted of VADAG, Concerned Drivers Association of Ghana, Ghana Committed Drivers Association, True Drivers Union, Concerned Spare Parts Dealers Association of Ghana and Petroleum Consumer of Ghana (COPEC) and Coalition of Economic Association.
Introduced last year, the LVT required that owners of vehicles with engine capacity of 3.0-3.5 litres pay an annual tax of GHC1,000, those with engine capacity of 3.6-4.0 litres would also pay GHC1,500 and 4.1 litres and above GHC2,000 annually.
BY ANITA NYARKO-YIRENKYI