Anger and rejection have greeted the implementation of the levy imposed on vehicles with high engine capacities
The GRAPHIC BUSINESS observed at two separate private garages mandated to test and issue roadworthy certificates to vehicles that although vehicle owners were complying with the tax requirement, they were only doing so to avoid legal actions against them.
One such car owner,
He explained that his old vehicle, which was almost out of shape, could not be classified as a luxury car and added that the government should have limited the imposition of the levy on newly imported vehicles with such high capacity engines.
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When asked why the levy was misplaced, he said while pointing to his 1999 Ford Expedition that, “I don’t know how one can classify this car as a luxury car, what is luxury about it?” he queried.
In a separate interview with a car dealer,
He said the few owners of vehicles with high engine capacities he had encountered were unhappy about the levy but were forced to comply with the law.
“People have no option than to pay, there was no consensus and people are not happy about the tax but we are looking at the coming weeks to see the reaction from the government because so far people are not happy about it,” he said.
Vehicle dealers to demonstrate
Meanwhile, the Vehicle and Assets Dealers Association of Ghana on August 1 served notice that it would soon demonstrate against the implementation of the tax.
President of the association,
New luxury levy
The implementation of the luxury vehicle law commenced August 1 after Parliament passed it to impose an annual levy on vehicles with high engine capacities after it was proposed by the government in the mid-year budget review on July 19.
With the approval of the legislators for its implementation, vehicles with engine capacity of 2950 to 3549 Cubic Centimetres were required to pay a levy of GH¢1,000, while those with engines between 3,550 to 4049 cubic
Vehicles with engine capacities above 4049cc were also obliged to pay GH¢2,000.
The levy would be paid by the vehicle owner on the registration of the vehicle and subsequently on or before the annual renewal of the roadworthy certificate each year to the DVLA, the body
Although the levy has been imposed on vehicles with the listed cubic