Executive Secretary of Vehicle and Assets Dealers Union of Ghana (VADUG), Frank Atanley Kofigah, has called on government to halt the implementation of the Customs Amendment Act 2020 (Act 891) effective September 1, 2022.
According to him, the implementation of the new law will totally collapse Used Car Dealership Industry in the country. He revealed that the passage of the Bill will provide huge incentives to the Automotive Manufacturers and Assemblers registered under the Ghana Automotive Manufacturers Development Programme (GAMDP) whilst making it extremely difficult for VADUG members to import.
“This Bill if implemented, means the following artisans in the Value Chain will be affected: Ghanaian shippers from abroad, clearing agents, towing drivers, straighteners, auto mechanics, auto electricians, auto sprayers, auto AC mechanics, Key programmers, Upholstery, auto alignment, washing bay attendants, upholstery workers Uber drivers, Trotro drivers, spare parts dealers, DVLA assistants (Goro boys).”
Mr Kofigah noted that the existing market for the dealers has been providing automobile needs for the average, middle and high income Ghanaians for all these years. He explained that it has also supported the “budget of government expenditure through huge import duties” collected at the port.
“These import duties have aided successive governments in the development of our economy.”
VADUG urges government to protect industry players
VADUG, Mr Kofigah indicated, has never been an opposition to the introduction of foreign vehicle Assemblers. Nonetheless, he explained that all that the union seeks from government is to ensure all industry players and stakeholders are protected by the policy.
The Executive Secretary of VADUG believes this will enable a “healthy competitive and taste varied Automobile market” rather than creating a monopolized market for foreign investors to cash in.
Among other things, Mr Kofigah highlighted that the union will only accept the implementation of the new law if some reliefs are granted by government. He stated that government must reduce the 0 year to 5 years to 0 year to 10 year and scrap the 35% penalty on 0 to 5years completely. Also, he revealed that government must maintain the Korea Trucks mode of shipping and scrap the vehicle import application as it will be disadvantageous to Ghanaians since other countries also bid for those vehicles.
“Maintain a constant Dollar Rate at the Port for 6months to ensure advance and stable planning towards the clearing of our vehicles. Restoring of the Bench Mark Values and stability of the local currency.”
Mr Kofigah emphasized that VADUG is therefore seeking the “reliefs without any delay and failure to address these issues will result in the union taking drastic decisions” and steps.
The objective of the bill is to amend the Customs Act, 2015 (Act 891) to provide incentives for automotive manufacturers and assemblers registered under the Ghana Automotive Manufacturing Development Programme, prohibit importation of salvaged motor vehicles and specific motor vehicles over ten years of age into the country. Also, the Act is intended to increase duty on specific motor vehicles and provide import exemptions for the security agencies and officers of the security agencies.
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