The Vehicles and Assets Dealers Association of Ghana (VADAG), on Wednesday, asked the government to withdraw the Luxury Vehicle Levy within two weeks or they will hit the streets to protest.
The Association said if after two weeks the government does nothing about the levy its members would embark on a massive demonstration throughout the country to register their displeasure.
Government recently enacted an Act to impose an annual levy on vehicles with engine capacity ranging from 2.9, 3.0, 3.5. 4.0 and upwards.
Nana Yaw Owusu Duodu, General Secretary of VADAG said at a press briefing in Accra that although VADAG had petitioned a number of government agencies such as the Office of the Chief of Staff at the Presidency, the Speaker of Parliament, the Minister of Transport and the Minister of Finance, as well as Parliamentary Standing Committees on Finance, the appeals had yielded no response.
He described the new levy as “nothing but a rip off of we the importers, and Ghanaians at large.”
“In fact, there was no dialogue, and VADEG was not involved in the imposition of the levy,” he said.
Touching on the need to withdraw the levy, Mr. Duodu said already, engines with capacities, ranging from 2.9 to 4.5. attracted so much payment on duties at the ports of entry, “yet they are all stuck in their stores, thereby reducing the rate of turn over.”
He said because of difficulty in paying the levies, car owners were refusing to fix back engines which fell within the levy range, which was in effect, knocking drivers out of job.
Mr. Duodu observed, that the poor nature of roads in the country, forced many people to use vehicles with engine capacities, ranging from 2.9 to 4.0, and not because the cars were luxurious.
“The government stands to lose so much revenue if importers of such vehicles refuse to import them, while at the same time people who use such vehicles decide to park their cars,” he said.
Mr Duodu continued, “we the car dealers, in conjunction with other concerned groups, would stage “a very big demonstration against this levy, if it is not withdrawn within two weeks.”
The levy, captured in the year 2018 budget (Act 969), was passed by Parliament, accented by President Nana Addo Dankwa Akufo-Addo, on July 31, 2018.
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