Six groups protest against the tax on luxury vehicles

General News of Monday, February 18, 2019

Source: Graphic.com.gh

2019-02-18

On Tuesday, February 19, six groups will demonstrate against the luxury vehicle tax by driving their vehicles on the premises of the Ministry of Finance, Parliament and Golden Jubilee House.

According to a statement jointly signed by the groups, namely: Association of Vehicles and Property Dealers of Ghana, National Association of Spare Parts Distributors concerned, True Drivers Union, Association of Concerned Drivers, Association of Engaged Drivers of Ghana and House oil consumers, they expect that some 2 000 luxury vehicles will participate in the event.

"The protest is scheduled at 8 am The ride will be from Obra Spot, pbading through Kwame Nkrumah Avenue, up to the fire of Farisco until the TUC before leaving our vehicles in the aforementioned establishments, "the statement said.

In July 2018, the Minister of Finance, Mr. Ken Ofori Atta, during the mid-year budget review, announced the imposition of a tax on the importation of luxury vehicles into the framework of a new policy aimed at increasing revenues.

He added that the tax would be imposed on luxury vehicles with a capacity of 3.0 liters and more.

The law on luxury vehicles entered into force on August 1, after its adoption by the Parliament, which imposed an annual levy on high-capacity vehicles, after its proposal by the government.

With the approval of lawmakers for its application, vehicles with a cubic capacity ranging from 2,950 to 3,549 cubic centimeters had to pay a fee of 1,000 GH ¢, while those whose engine varied between 3,550 and 4,049 centimeters, paid 1,500 GH.

Vehicles with a displacement greater than 4049 cc were also required to pay GHG 2,000.

The fee would be paid by the owner of the vehicle at the time of registration of the vehicle, and at the latest at the annual renewal of the roadside clearance certificate, at the DVLA, the body authorized by law to collect the fee on behalf of the government.

Although the tax was imposed on vehicles with the cubic centimeter indicated before the law was pbaded, vehicles such as tractors are exempt from tax. ambulances; commercial vehicles capable of carrying more than 10 persons, commercial vehicles for the transport of goods, among others.