THE VEHICLE Asset Dealers Association of Ghana (VADAG) has threatened to embark on a demonstration if government fails to withdraw the Luxury Vehicle Levy (LVL) imposed on vehicle owners and importers.
According to the Luxury Vehicle Act, 2018 (Act 969), vehicle with engine capacity ranging from 2.9L to 3.0L were charged GH¢1,000; capacities ranging from 3.5L to 4.0L were also charged GH¢1,500, while vehicles with engine capacity of 4.5L and above were levied GH¢2000.
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.
At a press briefing in Accra, the General Secretary of VADAG, Nana Yaw Owusu Duodu, appealed to President Akufo-Addo to come to the aid of Ghanaians, by generating more revenue from high duties charged on imported luxurious vehicles.
He said: “Twenty-five per cent of the 150,000 vehicles imported into the country annually are luxurious vehicles. The average duty payable on these vehicles is between GH¢80,000 and GH¢ 500,000 and more”.
Mr. Duodu expressed his frustration saying that the policy introduced by the Minister of Finance has been detrimental to the car-selling industry nationwide.
Chairman of VADAG Eric Boateng said “the implementation of this levy has deterred many Ghanaians from buying these vehicles and has also forced owners of such vehicles to abandon them”.
The Executive Secretary of the Chamber of Petroleum Consumer (CoPEC) Ghana, Duncan Amoah, mentioned that the government makes up to 49 per cent from taxes imposed on fuel and petrol which currently sells at GH¢4.94 per litre; hence government made it GH¢22.23 per gallon.
Source: Daily Guide
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Long Overdue
who is talking about snow and hurricanes here? we are talking about big engines that guzzle a lot of fuel,but you chose to attack the person of others. stick to the subject and not bring those unnecessary argument.
I 100% agree with the Luxury Vehicle Tax , If the Government will Construct Luxury Roads for such Vehicles. So that we will stop buying Parts to fix the Vehicles in every trip we make. The Money for Spare Parts could be save to Pay the Government annually. If this better or Road cannot be construct, then abolish the unholy Luxury Vehicle Tax NOW.
Don't be seelly does it snow here in Ghana or do we experience the hurricanes and the likes as it does in Europe? Why do you compare Ghana to Europe then... You chose to pay where you are because you begged to be a resident in someone's country where you have no say. But not here in my own country... Garbage in, garbage out be the rule if you don't know..,
I share your concern, but don't forget that, cars are taxed here in Europe based on the cc of the engine. It is exactly to curb what you said in your post.Why must the ordinary people suffer for those who own those big cars? the little money that can be used in improving education and health sector must not be used to be buying fuel at subsidized price to the benefit of those who own those cars. That money is also needed to improve upon the transport sector, to benefit all. I own one and i'm prepared to pay, because i pay it here in Europe. If not, go for a smaller car, period.
WHEN THIS TAXATION WAS INTRODUCED BRAIN-WASHED GHANAIANS SAID, PEOPLE SHOULD PAY MORE BECAUSE THEY ARE ENJOYING REGARDLESS OF THE IMPACT THAT WAS GOING TO HAVE ON SOME GHANAIAN BUSINESSES. AS RATIONAL HUMAN ARE, DEFINATELY WILL REACT AND THE REACTIONS ARE THAT, PEOPLE WILL NOT BUY SUCH CARS,BUSINESSES WILL COLLAPSE, UNEMPLOYMENT WILL INCREASE.FUEL CONSUMPTION WILL ALSO BE AFFECTED. ONE WONDERS WHO ACTUALLY SAT-DOWN SUGGESTED THIS? NO CONSULTATION WITH DVLA OR OTHER STAKEHOLDERS NOT TO TALK OF GENERAL MASSES. HOW CAN CAR WITH REG.# GT 444-A, WITH CC OF 4.4L, 1999 MODEL BE MADE TO GHC2000.00 EVERY YEAR AFTER PAYING HEAVY DUTY AT THE PORT.DR BAWUMIAH,YOU SUPPORTED THIS KEN OFORI-ATTA THEORY. LET SEE