The General Jurisdiction Division of the Accra High Court presided over by Justice Daniel Mensah has ruled that members of the Vehicle and Assets Dealers Association of Ghana can now embark on their planned demonstration to urge the government to scrap the levy imposed on luxury vehicles.
The court on Tuesday, 5 March 2019 also directed that the police should provide adequate security and protection to the disgruntled car dealers during their demonstration.
The car dealers had served notice of their demonstration, but the police run to court to seek an injunction on the march.
President of the association, Eric Kweku Boateng said the tax is not good for the country.
The association, in an earlier statement, said the levy “will cause a disincentive to our prospective buyers and thereby render our businesses unpopular even though, we pay huge amounts of money as duties on those cars and vehicles instantly at the ports and harbours before we could be allowed to drive to our various garages”.
The group is of the view that the levy will encourage the use of fake road worthy certificates, which is normally provided by middlemen at the premises of the Driver and Vehicle Licensing Authority (DVLA).
With the luxury tax, an annual levy has been imposed on vehicles with high engine capacity of 2950 cubic centimetres and more.
The levy is as follows:
2950cc – 3549cc GHS1,000
3550cc – 4049cc GHS1,500
Above 4049cc GHS2,000
The levy is paid on the registration of vehicles and subsequently on or before the annual renewal of the roadworthy certificate of such vehicles, with engine capacities as listed above.