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General News of Friday, 28 June 2019

Source: 3news.com

Mahama to join demonstration against luxury vehicle levy

Ex-president John Dramani Mahama is expected to join the demonstration against luxury vehicle levy on July 9, 2019, organisers have claimed.

The administrator of the Vehicle Asset Dealers Association of Ghana (VADAG), Mr. Abdul Saed told journalists on Wednesday that the former president is several other stakeholders have decided to join them protest against what they described as ‘killer tax”.

“The Finance Minister is confusing engine capacity with a luxury vehicle. Because the latest Porsche Cayenne car is costing 250,000 dollars with 2.7 engine capacity and the government is not taxing such a vehicle but Mercedes Benz, C300 that I bought 20 years ago is a luxurious car. How come?” he quizzed.

According to a consultant of the group, Mr. Jacob Osei Yeboah, they have written several petitions to various government agencies but to no avail. But when Ex-President Mahama commented on the issue, the finance ministry called for a meeting with them, he claimed.

“When Mahama came out to speak on the issue that he will scrap it when elected in 2020, they were called by the finance ministry for a meeting but up to date no feedback from government. Now all whose businesses are affected will be part of the upcoming demonstration. What is bad is bad, if they were to listen to us I don’t think we will get to the stage where ex-president Mahama will come out to speak and all those whose business are affected including, Coalition for Social Justice, Menzgold and small scale miners among others coming onboard to join us demonstrate”, he said

“The luxury tax is collapsing a lot of businesses – importers of vehicles, importers of engines or spare parts, including drivers – meanwhile government is supposed to help businesses grow then make money by taxing them. But that is not what is happening, this levy is destroying our business, they didn’t do broad consultation before implementing and all attempts to get them listen to us failed,” he lamented.

Over 100 vehicles and more than 10,000 people are expected to join the “kum yen preko demonstration” on the 9th of July, 2019.

Chairman of the group, Mr. Eric kwaku Boateng highlighted the effect of the tax on their business.

“We pay duty at the port to government on these vehicles and when we bring them to the garages, people don’t buy because they say they are not ready to pay Gh¢1,500 or Gh¢2,000. So, the vehicles are there and nobody is willing to buy them. Meanwhile government has already taxed us so what are they doing to us and our businesses”, he quizzed.