The Vehicle and Asset Dealers Association of Ghana (VADAG) has rescinded its decision to join the ‘Kum Yen Preko’ demonstration following government persistent calls on the association to stay off the protest against rising tax on importation of spare parts into the country.
Members of the Coalition for Social Justice, has today, Tuesday, 9 July 2019 embarked on a demonstration dubbed “Kum Yen Preko” to register their displeasure over what they term as severe hardship in the country.
The President of VADAG, Mr. Eric Kweku Boateng speaking on Rite News, said the Association upon careful consideration and amicable engagement with government of President Nana Addo Dankwa Akufo-Addo, the VADAG withdrew its earlier decision to stage series of protests against the much-talked about and controversial luxury vehicle tax.
According to him, this decision was agreed upon by the sub-associations including the True Driver’s Union, Chamber of Petroleum Consumers (COPEC), Ghana Committed Driver’s Association and Hon Jacob Osei Yeboah (Joy 2020).
Mr. Eric Kweku Boateng further noted that the Minister of Finance, Ken Ofori Attah had earlier revealed in a press conference that the said luxury vehicle tax will be reviewed in the mid-year budget hearing slated for July 31, 2019.
The sector Minister said the decision was arrived at following stakeholder engagements.
However, Mr. Eric Boateng expressed disappointment on the decision arrived at, saying they want a complete scrap of the levy.
Meanwhile, doors of the car dealers are open for further deliberations with the government on the best ways of making Ghana business friendly and engaging.
Mr. Boateng was quick to state that high nuisance taxes will not only cause damage to business growth but also hinder innovation and job creation.
The association, however, encourage all members to proceed on normal work activities as deliberations with the government continues.
It would be recalled that over the past few days, the Vehicle and Assets Dealers Association of Ghana and other associations in the automobile industry including the Concern Drivers Association of Ghana, Ghana Committed Drivers Association, True Drivers Union, Concerned Spare Parts Dealers Association of Ghana and the Chamber of Petroleum Consumers Ghana (COPEC) have lamented over the vehicle levy tax slapped by the government on vehicles in the last mid-year budget.
The players in the automobile industry contended that the rate of the luxury vehicle tax which they described as a ‘killer tax’ was introduced in July 2018 by the government of President Nana Addo Dankwa Akufo-Addo, with some players in the automobile industry and stakeholders stressed the urgent need for its removal.
According to them, the tax is negatively affecting their business, therefore, the need for the planned demonstration dubbed, “Kum Yen Preko.”
They also say the government is not doing much to ensure a stable economy that will support the growth of their businesses.
The Parliament of the Republic of Ghana has passed the Luxury Vehicle Levy to impose an annual levy on vehicles with high engine capacities. The implementation of this Law took effect from Wednesday, 1st August, 2018.
Vehicles with engine capacity of two thousand, nine hundred and fifty (2950) Cubic Centimeters and more are required to pay respective levies.
Imposition of Levy
| No. | ENGINE CAPACITY (CC) | Levy (GH¢) |
| 1 | 2950cc – 3549cc | GH¢1,000 |
| 2 | 3550cc – 4049cc | GH¢1,500 |
| 3 | Above 4049cc | GH¢2,000 |
By Austin Ofori Addo/ritefmonline.com/austinofori.addo@gmail.com
