The Vehicle and Asset Dealers Association of Ghana (VADAG), said its demonstration planned for July 9, would not be called off, despite the assurance given by the government to review the Luxury Vehicle Tax (LVT) law during the mid-year budget.
The review of the tax on luxury vehicle, it stated, was untenable and should be scraped since this was affecting their businesses.
The Chairman of the VADAG, Mr Eric Kwaku Kwarteng, who disclosed this to the Ghanaian Times in Accra yesterday, said the association would do all it could to compel the government to scrap the tax.
Under the LVT introduced by government last year, owners of vehicles with engine capacity of 3.0 to 3.5 litres are required to pay an annual tax of GH¢1,000.00 while those with engine capacities of 3.6 to 4.0 litre are to pay GH¢1,500.00 and vehicles with 4.1 litres and above, GH¢2,000.00, annually.
“Our members would hit the streets on Wednesday to protest against the killer tax,’’ Mr Kwarteng said.
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 a 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 to take part in the demonstration consist 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).
Pix: NIB/Photo Vehicle Tax photo backup