Dealers in brand new vehicles in the country have asked government to consider a reduction in taxes on imported vehicles.
According to them, the COVID-19 pandemic has had a negative impact on sales and business generally and offering some tax relief will go a long way to help them.
General Manager of Alliance Motors Richard Ankomah in an interview said, they have been pushing for this relief for some time. He added that, when the government granted importers of second hand cars last year, it had an impact on their operations.
“We have advocated for it. I think last year or so when the grey import or the other market got a relief in used cars we were affected. Then it’s quite appealing to buy a car that is brought from the U.S. But we didn’t get any exemption of that sort. But then we wish we could have also got some exemptions for people to afford new cars actually. That is not something we are getting but then, we are still floating.”
He indicated that if government grant their request, it will help reduce the prices of the cars they import, which will make their vehicles low-priced than it is now.
“It will go down to reducing our prices. It will trickle down to the consumer in the long term. So, obviously it will make most of our vehicles affordable.”
He reiterated that,
“…we wish we could get something like exemption afforded to the same grey import vehicles that are being brought here.”
Mr Ankomah pointed out that, their vehicles have been known to be purchased by only the upscale in the society and as such the granting of this relief has the possibility of making their cars a preserve of “certain class of people.”
This according to him is because, “tax reduction” will affect their pricing, consumer spending and “everything in the grand scheme.”
The future of vehicle importers, whether brand new or used may be uncertain in the country as the government has established the Automotive Development Policy to provide the necessary framework for the assembly and manufacturing capacity in Ghana.
Toyota, Suzuki, Volkswagen, Nissan and Sinotruk are among the major automobile companies with an interest in Ghana.
Among these companies Volkswagen and Sinotruk have already started operations.
According to the finance Minister, Toyota and Suzuki are “well positioned” to also start assembling.
The current government has said that, it wants the Ghana Automotive Manufacturing Development Programme to boost employment and offer an import substitution and export promotion to improve the country’s balance of payment.
The administration has its sights on making Ghana the centre for automobile manufacturing on the African continent. With that ambition in mind and the numerous agitations by the importers of new and used cars swelling by the day because their source of living is being threatened, the government has difficult and bold decisions to make.
Not only importers have raised concerns about the government’s plans. Dealers in spare parts and artisans in the value chain of the informal auto industry have let out their fears.
