Ghanaians demonstrate against luxurious vehicle tax

The Vehicle Asset Dealers Association of Ghana (VADAG) and Concerned Spare Parts dealers are currently on a demonstration in Accra over the Luxury Vehicle Levy (LVL) imposed on vehicle owners and importers.

Luxury vehicles

The aggrieved members of the group said they will petition President Nana Addo Dankwa Akufo-Addo if the government fails to withdraw the tax imposed.

According to the Luxury Vehicle Act, 2018 (Act 969), vehicle with engine capacity ranging from 2.9L to 3.0L were charged GH¢1,000; capacities ranging from 3.5L to 4.0L were also charged GH¢1,500, while vehicles with engine capacity of 4.5L and above were levied GH¢2000.

Chairman of the Concerned Spare Parts dealers, Kwabena Adjei in an interview on Accra-based Starr FM said the President must listen to them or bare the consequences in next year's polls.

"We have some concerns with the Luxury tax. Since the inception of the tax, engines above 2.9 are not being purchased and that is affecting sales. We have petitioned the Finance Ministry, Parliamentary Committee in charge of finance. As we speak, we have not received any form of response. After this demonstration, if there is no change at all, we will be heading to court.


"We are using the so called ‘luxurious’ cars to demonstrate. I don’t understand how toilet puller cars, ‘borla’ cars all qualify as luxury cars," he said.

Presenting the mid-year budget review to parliament on Thursday, 19 July, 2018, Finance Minister, Ken Ofori-Atta said all luxury cars with an engine capacity of 3.0 litres and above, will attract a tax.

He said: "On the under-performance for the first five months of 2018, we will end the year with an estimated deficit of 4.9% of GDP compared to the programmed target of 4.5%, resulting in a fiscal gap of GH¢870 million, unless we immediately implement some fiscal measures; intensive tax compliance measures, New revenue measures, Intensive Conversion of NHIL (2.5%) to a straight levy, Conversion of GETFund VAT rate of 2.5% to a straight levy, Imposition of luxury vehicle tax of GH¢1,000 – GH¢2,000 on non-commercial vehicles with capacity of 3.0 litres and above, review of PIT to include an additional band of GH¢10,000 and above per month at a rate of 35% and downward adjustment discretionary expenditures."


Unblock notifications in browser settings.

Eyewitness? Submit your stories now via social or: