The General Secretary of Vehicles and Assets Dealers Association of Ghana (VADAG), Nana Yaw Owusu Duodu is unhappy with government’s slapping of a special levy on luxury vehicles.
According to Mr. Duodu, importers of such vehicle were being given a raw deal adding because of the imposition; it had become difficult for car owners to fix back engines which fell within the levy range, which was in effect, knocking drivers out of job.
He submitted importers having to pay GHc80,000 to GHc120,000 as duty charges was burdensome noting about 25% of the 120,000 vehicles imported into the country yearly were luxury ones showing they form a considerable constituency to be taken seriously.
He held that even before the birth of the new levy, importers bringing in vehicles with engines with engine capacity ranging from 2.9 to 4.0 already paid huge duties at the ports of entry stressing because of the terrible nature of Ghanaian roads many were compelled to buy vehicles with such engine capacities not out of a desire to live large but of necessity to save cost from the frequent attendance at the repair shop.
According to the VADAG executive, if petitions directed at the Ministers of Transport and Finance, Chief of Staff at the Presidency, Speaker of Parliament as well as Parliamentary Standing Committees on Finance go unheeded, the car dealers with other affected groups will stage a protest march if the levy is not withdraw.
Government has enacted an Act to impose an annual levy on vehicles with engine capacity ranging from 2.9, 3.0, 3.5 and 4.0 in hopes of raising funds to execute social projects.
Vehicles with engine capacities of 3.0 – 3.5 litres attract an annual tax of GHc1,000; those with engine capacities of 3.6 – 4.0 litres pay GHc1,500 annually; while 4.1 litres and above face an annual tax of GHc2000.
The levy, given presidential accent by Akufo-Addo on July 31, 2018 was passed by Parliament becoming (Act 969).
By Michael Eli Dokosi/goldstreetbusiness.com