Demo looms over Luxury Vehicle Tax

The Vehicle Asset Dealers Association of Ghana (VADAG) has threatened to embark on a demonstration if government fails to withdraw the Luxury Vehicle Levy (LVL) imposed on vehicle owners and importers.

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.

However, the levy was not applicable to other categories of motor vehicles such as tractors, ambulances, commercial vehicles that have the capacity to transport more than 10 persons, as well as commercial vehicles for the transport of goods.

The levy is payable by owners of motor vehicles on the date of the first registration and subsequently upon renewal of the annual roadworthy certificate of the motor vehicle.

The levy is also payable on existing motor vehicles registered prior to the introduction of the Act.

At a press briefing in Accra, the General Secretary of VADAG, Nana Yaw Owusu Duodu, appealed to President Akufo-Addo to come to the aid of Ghanaians, by generating more revenue from high duties charged on imported luxurious vehicles.

He said: “Twenty-five per cent of the 150,000 vehicles imported into the country annually are luxurious vehicles. The average duty payable on these vehicles is between GH¢80,000 and GH¢ 500,000 and more”.

Mr. Duodu expressed his frustration saying that the policy introduced by the Minister of Finance has been detrimental to the car-selling industry nationwide.



Chairman of VADAG Eric Boateng said “the implementation of this levy has deterred many Ghanaians from buying these vehicles and has also forced owners of such vehicles to abandon them”.

The Executive Secretary of the Chamber of Petroleum Consumer (CoPEC) Ghana, Duncan Amoah, mentioned that the government makes up to 49 per cent from taxes imposed on fuel and petrol which currently sells at GH¢4.94 per litre; hence government made it GH¢22.23 per gallon.