Two Driver unions – Concern Drivers Union and True Drivers Union have threatened to drive all their vehicles with engine capacities of 3.0 Litres upwards at the Jubilee House over the Luxury Vehicle Levy which was implemented by the government this year.
The angry drivers have said notice if president Akufo-Addo fails to use his influence to get the Finance Minister withdraw the Luxury Vehicle Levy (LVL) imposed on vehicle owners and importers, they will demonstrate and later leave all their vehicles which include Kia trucks, tractors, ‘207’ Benz buses and other saloon cars at the Jubilee house and the president’s private residence at Nima in Accra.
Yaw Barima, a Vice Chairman of True Drivers Union made this known on Ete Sen on Radio XYZ 93.1 Tuesday morning. He said a two-week ultimatum that had been given the government to rescind its decision had elapsed yet no response has come from the sector minister.
Yaw Barima said importers and spare parts dealers group, Vehicle Asset Dealers Association of Ghana (VADAG) have all raised red flags over the levy because their sales have began dwindling following the implementation of the levy.
“Ghanaians do not want to buy vehicles with engine capacities that attract the Luxury Vehicle tax these days… spare parts dealers in Accra have also raised concerns that people are not buying vehicle engines beyond 3 litres, so they will also bring those engines when we are ready to abandon our cars,” he disclosed.
He also disclosed that the government failed to consult them before making the decision, adding that “the government is doing galamsey (illegal mining) in the pockets of poor drivers in addition to rampant fuel hikes.”
“The government did not consult us before this act was implemented. We have written to the presidency and Ken Ofori Atta (the Finance Minister) but we have not heard anything from them…They don’t know how the levy is negatively affecting our businesses and lives, but we want to tell the government that we can’t pay the luxury tax so they should abolish it,” Barima told Piesie Okrah on the XYZ Business news.
The group will have a meeting later today to take a decision on when exactly they will protest against the government.
According to the Luxury Vehicle Act, 2018 (Act 969), vehicle with engine capacity ranging from 2.9L to 3.0L were charged GHc1,000; capacities ranging from 3.5L to 4.0L were also charged GHc1,500, while vehicles with engine capacity of 4.5L and above were levied GHc2000.
Finance Minister Ken Ofori-Atta announced this in Parliament Thursday July 19,2018 when he presented the government’s Mid-Year Budget Review
However, the levy was not applicable to other categories of motor vehicles such as tractors, ambulances, commercial vehicles that have the capacity to transport more than 10 persons, as well as commercial vehicles for the transport of goods.
The levy is payable by owners of motor vehicles on the date of the first registration and subsequently upon renewal of the annual roadworthy certificate of the motor vehicle.
The levy is also payable on existing motor vehicles registered prior to the introduction of the Act.