Ghana’s Luxury car tax: Govt invites transport association to negotiation table

The government has  extended an invitation to the leadership of five transport associations together with the Chamber of Petroleum Consumers Ghana (COPEC-Ghana) to dialogue following the groups’ threat to stage a demonstration on Monday, 19 February 2019 against government’s implementation of the luxury vehicle levy.

The levy which requires vehicles with engine capacities of 2.950 cc and more to pay between GHS200 and GHS1000 came into effect in August 2018.

The amount is payable on the registration of vehicles and subsequently on or before the annual renewal of the roadworthy certificate.

Six months after its implementation, the transport associations including car dealers say the policy is inimical to their business and thus intend to hit the streets.

Executive Secretary of COPEC, Duncan Amoah  said authorities must take a second look at the law.

He said: “There was a press conference and no attention whatsoever was paid to the concerns by the Vehicles and Asset Dealers Association of Ghana, no attention has been paid to concerns raised by even the drivers talk less of the ordinary suffering Ghanaian who is now being asked by the DVLA to cough up GHS1000 just because he owns a certain vehicle that has a certain engine.

“The unfortunate bit is that it is even exempting vehicles that have bigger engines that will put bigger pressure on our roads and it’s rather targeting the smaller ones, that is, if you do relative comparisons and we think this is not good enough to be allowed to continue.”

However, Deputy Minister of Transport, Nii Kwartei Titus Glover said the street protest will not be the best solution to the concerns being raised by the transport groups and has thus invited the leadership of the groups to dialogue on the way forward.

He said: “The issue is that it is their right and nobody can stop you from demonstrating but if you are demonstrating and there is an opportunity for you to come to the table and dialogue, that should stop you from doing that…My doors are always open, the doors of the ministry are always open for us to look at issues like this, so they can come and we can arrange a [sit down].”