Luxury Vehicles Tax: Abronye DC descends heavily on John Mahama

The Bono Regional Chairman of the ruling New Patriotic Party (NPP), Kwame Baffoe popularly known as Abronye DC has descended heavily on former President John Mahama for promising to abolish the Luxury Vehicles Tax if wins power in 2020.

Speaking to executives and drivers of the Neoplan station local GPRTU in Accra on Thursday, April 18, 2018 as part of his “Pre-Easter Walkabout”, Mr. Mahama argued the new tax in itself is not generating that much revenue and wondered why the government would not scrap it.

He, therefore, described the Tax as ill-conceived which has over-burdened the ordinary driver.

“My government will abolish the Luxury Vehicles Tax from 2021, if the Akufo-Addo government refuses to suspend or scrap it,” Former President Mahama has said.

Mr. Mahama pointed out that the new tax is a liability and not generating that much revenue, wondering why government would not scrap it.

Meanwhile, the Chairman of the Vehicle and Assets Dealers Association, Eric Kweku Boateng has told Starr FM that the Luxury tax is collapsing their businesses and therefore members of his group welcome Mr. Mahama’s promise in that regard.

“If you’re hungry and somebody said, my brother I can give you food to eat. So what do you do? You just accept,” he noted.

The luxury vehicles tax was introduced by the Akufo-Addo-led administration to tax vehicles with bigger engine capacities.

The group last month staged a demonstration against the luxury vehicle tax in Accra, protesting the levy.

But in a statement signed by Abronye DC and copied to the media, he said John Mahama’s assertion that the tax itself is not generating much revenue to the government hence calls for its abolishment, is completely false.

“…This assertion by John Mahama is completely false. A man of his caliber should desist from such lies because he has every opportunity to cross-check his facts before airing same. But if he decides to resort to lies and falsehood, some of us are also ready to face him squarely”, he opined.

Abronye said the Luxury Vehicle Act strictly exempted tractors, ambulances, commercial vehicles that have the capacity to transport more than ten persons among others.

Abronye DC said he wondered why a whole former President who should know better will say the tax affects all vehicles including commercial vehicles, farm tractors, pick up vehicles among other vehicles.

“It is important to know that, per the legislative instrument (Luxury Vehicle Levy Act, 2018, Act 989) which is regulating this tax, the following categories of vehicles are strictly exempted from the levy; tractors, ambulances, commercial vehicles that have the capacity to transport more than ten persons; commercial vehicles for the transport of goods…”, he explained.

He, therefore, urged the former President to stop paddling lies and save his reputation.

“Now, it is clear that John Mahama lied. I will like to urge John Mahama to stop lying because he is gradually damaging his 1% reputation left”, he advised.
He added that “As former president who is still been paid with the sweat and hustle of the taxpayer, we are expecting him to live up to standards and expectations and not to resort to lies, propaganda and cheap politics”.

He noted that former President John Mahama doesn’t have any moral right to talk about tax adding that former President John Mahama introduced a lot of nuisance taxes to kill Ghanaians.

“So John Mahama is aware that, taxes are a burden on Ghanaians and he delibrately implemented all these nuisance taxes. This shows why Mahama is Ghana’s best hypocrite”, he fired.

He concluded by saying that “John Mahama should sit down, drink and come again”.

Below is the full statement



Kwame Baffoe Abronye Writes

RE: I WILL ABOLISH LUXURY CAR TAX ON COMMERCIAL VEHICLES – SAYS JOHN MAHAMA

I am beginning to have the conviction that, either Former President John Dramani Mahama has no respect for Ghanaians and drivers or he has deliberately decided to adopt a political strategy of falsehood, propaganda and distorted facts.

It is undoubtable that, the NDC and their Flagbearer Mr. TIO (The Incompetent One) are good at opposition party politics since they are well groomed and masters of the game when it comes to deceptive politics and deceiving electorate.

Yesterday Mr. Mahama Speaking to executives and drivers of the Neoplan station local GPRTU in Accra as part of his nationwide, to tell Ghanaians he wants to come back to further milk the nation and to feed his friends and family, Mr. Mahama said that, the new tax is itself not generating that much revenue and wondered why government would not scrap it he announced he will abolish the luxury vehicles tax introduced by government to tax vehicles with bigger engine capacities.

He added that, the tax affects all vehicles including commercial vehicles, farm tractors, pick up vehicles among others and has caused alot of problems, difficulties and hardship on drivers.

This assertion by John Mahama is completely false. A man of his caliber should desist from such lies because he has every opportunity to cross check his facts before airing same. But if he decides to resort to lies and falsehood, some of us are also ready to face him squarely.

It is important to know that, per the legislative instrument (Luxury Vehicle Levy Act, 2018, Act 989) which is regulating this tax, the following categories of vehicles are strictly exempted from the levy:

a) tractors;

b) ambulances;

c) commercial vehicles that have the capacity to transport more than ten persons;

d) commercial vehicles for the transport of goods;

e) other exemptions as may be prescribed by the Minister responsible for Finance.

Attached to this piece is the notice issued by the Ministry Of Finance which initiated the policy/levy.

From the letter/notice attached, it is clear that, the vehicles John Mahama said are obliged to pay the tax are all exempted and excluded from the levy.

It is important to note that, the attached notice is incorporated into the luxury Vehicles Levy
2018 (Act 989)

Now, it is clear that John Mahama lied.
I will like to urge John Mahama to stop lying because he is gradually damaging his 1% reputation left.

As former president who is still been paid with the sweat and hustle of the taxpayer, we are expecting him to live up to standards and expectations and not to resort to lies, propaganda and cheap politics.

Finally, below is a list of taxes which which was imposed by the NDC government but same has been abolished and some reviewed by the listening current government of President Nana Addo:

– 5 percent VAT/NHIL on Real Estate sales

– Excise duty on petroleum

– Special petroleum tax rate from 17.5 percent to 15 percent

– Duty on the importation of spare parts

– Levies imposed on kayayei by local authorities

– Taxation, the gains from realisation of securities listed on the Ghana Stock Exchange or publicly held securities approved by the Securities and Exchange Commission (SEC)

– 1 percent Special Import Levy

– 17.5 percent VAT/NHIL on financial services

– 17.5 percent VAT/NHIL on selected imported medicines, that are not produced locally

– Initiate steps to remove import duties on raw materials and machinery for production within the context of the ECOWAS Common External Tariff (CET) Protocol

– 17.5 percent VAT/NHIL on domestic airline tickets

So John Mahama is aware that, taxes are a burden on Ghanaians and he delibrately implemented all these nuisance taxes. This shows why Mahama is Ghana’s best hypocrite.

John Mahama should sit down, drink and come again.

Thank You.

Source: Daniel Kaku