Car dealers, spare parts and support services for vehicle owners, have served notice they will stage a demonstration in Accra on 19th February 2019.  

The group, made up of the Vehicle and Asset Dealers Association (VADA), the National Concerned Spare Parts Dealers Association (NCSPDA), True Drivers Union (TDU), Concerned Drivers Association (CDA), and many others say the demonstration is to protest the tax imposed on the luxury vehicles by the government.

According to a statement issued in Accra, they will drive their "luxurious vehicles numbering about 2,000 to the premises of the Ministry of Finance, Parliament house and the Jubilee house respectively" to register their displeasure with the tax.

The release, signed by several members of the association, has accordingly invited the media and the public to be part of this protest.

Background

The Ghana Revenue Authority (GRA) has said the implementation of the law to levy vehicles with high engine capacities takes effect from Wednesday, 1st August 2018. 

Under the new tax regime, vehicles with engine capacity of 3.0 litres and more are required to pay respective levies, the GRA said in a release Monday.

“The Driver and Vehicle Licensing Authority (DVLA) is authorised by the Law to collect the levy on behalf of Government. With effect from Wednesday, 1st August 2018, the levy shall be paid on the registration of vehicles and subsequently on or before the annual renewal of the roadworthy certificate of such vehicles, with engine capacities listed above," GRA stated in the release.

The levy is also imposed on vehicles existing prior to the passage of the Law with the above-listed cubic centimetres. 

Also, vehicles whose roadworthiness certificates have already been renewed prior to the passage of this Law in 2018 will pay the levy starting from their next renewal date in 2019. 

Meanwhile, the following categories of vehicles are exempt from the levy:

a) tractors;

b) ambulances;

c) commercial vehicles that have the capacity to transport more than ten persons;

d) commercial vehicles for the transport of goods;

e) other exemptions as may be prescribed by the Minister responsible for Finance.