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Road Tow Debate: MASLOC Boss Cautions Stakeholders …Says Mandatory Levy Not Economically Prudent

Published in News Wednesday, 09 August 2017 08:34

 By Raymond Quarchie

Chief Executive Officer of Microfinance andSmallLoansCenter (MASLOC), Stephen Amoah, is the latest to raise grave concerns about the infamous mandatory road tow levy which has, and continues to encounter roadblocks thathas left its implementation in limbo.


Sticker, as the Investment Consultant is fondly referred to argue that, considering the way the previous administration run the country which brought a lot of hardship on the ordinary Ghanaian, it is not socio-economically prudent to implant another levy policy that would further reduce the disposable income of Ghanaians and thereby affect their consumption function adversely.

“I accordingly note that it is not socio-economically prudent to implant yet another levy policy or tax policy that will further reduce the disposable income of Ghanaians and thereby affect their consumption function adversely,” told this paper  .

According to Stephen Amoah, governments are formed to provide services that would meet the expectations of the people whilst levies or taxes reduce disposable income of the people thereby lessening the consumption functions of the people, and therefore, cautioned those pushing for the early implementation that “the levies will affect aggregate expenditure and have adverse effect on the economic growth if not properly analyzed or implemented”.


He noted that when a policy does not equate its expectation and the perception of the people is set, it is not deemed quality service, and resultantly dwindles the good of the policy maker or government amongst the people.

The MASLOC boss said it was needful to analyze the overall benefit or otherwise that will be accrued from the levy, interspersing his submissions with questions as: “Who are the original stakeholders of the policy? What are their respective benefits or gains? What will be the net impact on our economy as a country? How convincing is the project or policy appraisal to ensure that all stages and segments of its value chain is properly managed to reduce potential risk factors from collapsing it?”

Mr. Amoah quizzed how much education and consultation had been done to ensure an open culture system or participation approach that will ensure culture cooperation and compliance by the people.

Stephen Amoah also said that with such inputs, timeliness was of essence and asked if the implementation was timely and “Have there been alternatives in trying to solve the prevailing analysis? Have we critically analyzed the pros and cons of these alternatives? Is it the most efficient and effective for the country and all stakeholders? Who benefits what”?

The towing levy is part of a programme to ensure that all vehicles that breakdown on highways are cleared off the roads. Drivers are required to pay a road safety levy ranging between GH¢10 and GH¢200.

Commercial vehicles and taxis are to pay GH¢40; mini buses will pay GHc80, while heavy duty trucks will pay between GH¢80 and GHc200 annually, depending on their tonnage. Non-commercial vehicles are expected to pay GH¢20.

Amidst the widespread protests, the Ministry of Transport has said it has not yet taken any decision on the implementation of the controversial towing levy, though it is holding consultations with various stakeholders on the way forward.

The Roads and Transport Committee of Parliament has however recommended that government implement the mandatory tow tax.




Read 125 times Last modified on Wednesday, 09 August 2017 08:44

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  • Genevie Torralva
    Genevie Torralva
    Monday, 14 August 2017 20:18

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