The Vehicle and Assets Dealers Union of Ghana (VADUG) say they are unhappy about government’s decision to introduce a policy which will impose a 35 percent penalty on duty for imported second-hand vehicles into the country.
Deputy General Secretary of the Union, Clifford Ansu believes the decision to impose the penalty, on imported vehicles between one to five-year-old, is rather counterproductive.
Speaking in an interview, he explained that vehicle dealers in the country were already paying exorbitant duty charges on such vehicles thus the new policy will rather cripple their businesses.
“The amendment intends discouraging importation of secondhand vehicles and encourage automobile assemblers”.
“We are against this aspect of the law. For instance, a vehicle between 1-5 years attracts a penalty of 35% on duty. We are even struggling with the existing duty and when it is implemented before the year ends, it will surely collapse our business.”
Clifford Ansu is quoted by Joy Business after the Union held a meeting in Tema with Assin Central MP, Kennedy Agyapong on the Customs (Amendment) Act 2020, Act 891.
The Deputy General Secretary further lamented that the new policy will rather favour vehicle manufacturing and assembling companies operating in the country.
Touching on efforts to seek an audience with relevant authorities to reconsider the decision, Clifford Ansu said, “We recently met Minister for Trade and Industry, Alan Kyerematen, on this issue but he made it clear to us that nothing will stop implementation of this law and if we want any changes done, we need to go through parliament”.
“Despite being the sector minister, he declined helping us get our message across. It appears government has taken an entrenched position,” Mr. Ansu added.
Meanwhile, the Union said it calling on government to at least allow for the importation of used vehicles in order to assist persons who cannot afford vehicles being assembled and manufactured in the country.
As part of efforts to provide incentives to automobile manufacturers and vehicle assemblers who are registered under the Ghana Automotive Manufacturing Development Programme, government announced a ban on the importation of salvaged motor vehicles and specific motor vehicles over 10 years of age among others.
The move, which did not sit well with vehicle importers in the country received widespread backlash as some believed the move was far-fetched and accused government of taking an entrenched position.
The Ghana Automotive Manufacturing Development Programme which was launched in 2019 is expected to cost a sum of GH¢802,251,785 in customs duties and taxes with additional revenue from duties on vehicles not covered by the programme.
However, authorities believe that the implementation of the Programme will boost automobile manufacturing in Ghana which will in turn meet local demand across West African markets.
Source: Ghanaweb