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General News of Monday, 8 July 2019

Source: rainbowradioonline.com

We'll no longer join 'Kum Yen Preko' demo - VADAG

The Vehicle and Asset Dealers has issued a statement to announce that they have rescinded their decision to in the ‘Kum Yen Preko’ demonstration being championed by Coalition for Social Justice (CSJ) to protest against the government over rising tax on the importation of spare parts into the country.

In a statement dated Monday July 8, 2019, signed and issued by the President of VADAG, Mr. Eric Kweku Boateng and copied to the journalists in Accra, the Association asserted that upon careful consideration and amicable engagement with government of President Nana Addo Dankwa Akufo-Addo, the VADAG has rescinded an earlier decision to stage a series of protests against the much-talked and controversial luxury vehicle tax.

According to the statement, this decision was agreed upon by the sub-associations including the True Driver’s Union, Chamber of Petroleum Consumers (COPEC), Ghana Committed Driver’s Association and Hon Jacob Osei Yeboah (Joy 2020).

The statement noted that the Minister of Finance Ken Ofori Attah had earlier revealed in a press conference that the said luxury vehicle tax will be reviewed in the mid-year budget review slated for July 31, 2019.

The sector Minister expressed that the decision was influenced by some stakeholder engagements.

But according to the statement, the VADAG finds this response as disappointing especially when the tax, in all indications, has been criticized by a large section of the business community.

The statement stressed that they still insisted the tax must be abolished and not reviewed.

The statement stated that the dealers are open for further deliberations with the government on the best way(s) of making Ghana business friendly and engaging.

The statement mentions that high nuisance taxes will not only cause damage to business growth but also stall innovation and job creation.

According to the statement this luxury vehicle tax, if not abolished, could cause such damage.

To this end, VADAG entreated all members to proceed on normal work activities as deliberations with the government still continues.

It would recall that over the past few days, the Vehicle and Assets Dealers Association of Ghana and other associations in the automobile industry including the Concern Drivers Association of Ghana, Ghana Committed Drivers Association, True Drivers Union, Concerned Spare Parts Dealers Association of Ghana and the Chamber of Petroleum Consumers Ghana (COPEC) have lamented over the vehicle levy tax slapped by the government on vehicles.

The players in the automobile industry contended that the rate of the luxury vehicle tax which they described as a ‘killer tax’ was introduced in July 2018 by the government of President Nana Addo Dankwa Akufo-Addo, with some players in the automobile industry and stakeholders stressed the urgent need for its removal.

According to them, the tax is negatively affecting their bus described, therefore, the need for the planned demonstration the dubbed, “Kum Yen Preko.”

They also say the government is not doing much to ensure a stable economy that will support the growth of their businesses.