Govern Kwame Agbodza, a ranking member on the roads and transport committee has expressed his dissatisfaction over the Customs Amendment Law, and has demanded its review.
The Minority in Parliament are of the view the new law is counterproductive and will lead to more job losses than the creation of employment.
“This is not a decision the Minority was happy about, just the way we were not happy about the luxury vehicle tax but the government forced it too… the Customs Amendment bill, I think the Act 891 was reviewed into Act 10 (14) and significantly what government sought to do is to promote the production and assembling of vehicles in this country. Fantastic idea, nobody is against it.
Kwame Agbodza
“But sections of this law basically says that, one, there will be Ghana Automotive Authority. In fact as at the time they were making this law, we never even saw any document systematically explaining what that means, there was nothing like that. When we queried them, they said this law will not be effected immediately”.
According to him, the move by government is generating a lot of apprehension in the local leadership of vehicles as they are required to make a 35% payment for importation of cars.
“The price doesn’t fit foreign direct investment to collapse local businesses. Germany doesn’t fit foreign direct investments to collapse local industries in Germany. Why is the government of Ghana so fixated on this so-called foreign direct investment?”
“It is not too late, government of Ghana can still sit down with the stakeholders to review those sections of the law only to make it fair, that’s all we’re talking about”.
Also, the law which will take effect in November 2020 was passed by Parliament in March 2020 and prohibits the importation of salvaged vehicles and vehicles older than 10 years.
“They are saying that you cannot bring such vehicles into this country. Nobody is asking that anybody is allowed to bring in wrecked vehicles… we are saying this government must exist on the part of the people in this country and not only foreigners”.
Meanwhile, Mr. Agbodza, said the law, if allowed to take effect in its current form, will lead to the collapse of indigenous businesses in the automotive sector.
“We don’t believe the law as it stands now protects lives. By 10th of November, if this law is allowed to stand, what you will see is a lot of people losing their jobs and the new industry that we want to create will not be safe enough to give them any livelihood.”
“That is why we think that the government must tread cautiously. This law as crafted is not the one that will grow the automotive industry in this country,” he said.
However, Communications Minister, Ursula Owusu Ekuful has disagreed with his position, indicating that the motive of creating a vibrant automotive industry in Ghana that will make Ghana an exporter, will bring in maximum returns including jobs.
“I fail to see how they can come and say that this policy is going to collapse the local automotive industry. It is rather going to complement it and create ancillary job opportunities and grow the industry. If COVID-19 hasn’t taught us anything, it has taught us to be self-reliant and look within and see what we can do for ourselves”.
Ursula Owusu Ekuful
