We’II only clap for gov’t for scrapping luxury vehicle tax if we get refund of what we’ve paid-Drivers

Chairman for the Concerned Association of Ghana, Paa Willie, has said government can only be commended for the withdrawal of the Luxury Vehicle Tax when drivers are given a refund of what they paid since the implementation started.

The luxury vehicle tax was introduced in July last year to levy vehicles with big engine capacities in line with the sustainable development goals to control emissions and reduce the impact on climate change.

Vehicles with engine capacities of 3.0 – 3.5 litres were to pay an annual tax of GH¢1,000.00; those with engine capacities of 3.6 – 4.0 litres will pay GH¢1,500.00 annually and 4.1 litres and above are to pay an annual tax of GH¢2000.00.

The tax was met with opposition from drivers and other stakeholders.

The group of demonstrators 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 drove their vehicles in a convoy through some principal streets in the protest dubbed “Bobolebobo demonstration.”

But presenting the mid-year budget review, the Finance Minister Ken Ofori-Atta said the tax has been dropped.



Mr Ofori-Atta told Parliament “as a listening Government, we are proposing to the House, the withdrawal of the levy.

“We will continue to improve compliance, expand the tax net and explore other innovative sources of raising revenue,” he added.

However, Paa Willie says they would be only be happy if government refund all the monies collected from that.

He reiterated that tax brought untold hardship on them.

Meanwhile, he has slammed government over its decision to increase the energy sector levies.

The Government is proposing to increase the ESLA by GHc 0.20 per litre for petrol and diesel and GHc 0.8 per kg for LPG.

Based on current indicative prices for petrol and diesel this will translate to GHc 0.90 per gallon,” he said

The Government in 2017 issued the ESLA Bond, which has, to date, raised almost GHc 6 billion on the back of ESLA levies to pay for legacy debts from the previous government.

The bond’s proceeds were used to liquidate approximately 60% of the energy sector legacy debts.

According to him, what government has done is ‘robbing Peter to Paul’ because it has introduced new taxes that would rather bring untold hardship on the ordinary Ghanaian.

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