Car Dealers stage demo against luxury vehicle tax

A coalition of car dealers and owners on Thursday staged a demonstration against the luxury vehicle tax in Accra.

They drove their vehicles in a convoy through some principal streets, protesting the levy which was introduced by the government in August 2018 specifically for vehicles with engine capacity of 3.0 litres and above.

Dubbed: “Bobolebobo demonstration”, the demonstrators were from the Vehicle and Asset Dealers Association of Ghana (VADAG), National Concerned Spare Parts Dealers Association, True Drivers Union, Concerned Drivers Association, Ghana Committed Drivers Association and Chamber of Petroleum Consumers.

Wearing red armbands, some of them carried placards and had car stickers with various inscriptions such as “Ken Ofori Atta wake up”, “Vehicle taxes is a bad idea, Ken Ofori Atta”, “arrest the Dollar and stop the killer taxes”, Car dealers Y’enu yehu”, “Kill the killer taxes”, “Stop vehicle luxury tax”, “This is fraud”, “Give us explanation on luxury taxes”, and “Mr President remember your words.”

Luxury tax

The government introduced the vehicle luxury tax in August 2018 as a new policy to help raise more revenue.

Vehicles with engine capacity of 2950 to 3549 Cubic Centimetres are required to pay GH¢1,000, while those with engines between 3,550 to 4049 cubic centimetres pay GH¢1,500.

Vehicles with engine capacities above 4049cc are to pay GH¢2,000.

Scrap levy

Mr Eric K. Boateng, chairman of VADAG and a convenor for the demonstration said the group wants government to scrap the luxury vehicle tax.

He said they have given a two-week ultimatum to government to act or face their anger, adding that they were prepared to embark on a series of demonstrations across the country if government fails to listen to their plea.

According to Mr Boateng, over 5,000 supposed luxury vehicles have been parked in various garages across the country as prospective buyers have refused to buy them because they were trying to avoid the levy.