Ghanaians will no longer be able to import overaged vehicles (10 years or more) and salvaged vehicles into the country following the passage of the Customs (Amendment) Bill 2020 by Parliament.
The law will ban the importation of these specific vehicles which will cause car dealers and the nation some huge amount of revenue.
Ghana is set to lose over GHS802 million for the first three years in tax waivers.
The move by the government to bring the law into fruition is to stimulate the automotive industry which will see the launch of Volkswagen Assembling Plant next month.
Toyota, Sinotruk and Renault will follow suit with their assembling plants this year.
Making remarks during the approval of the joint report of Trade and Finance Committee, Deputy Ranking Member of the Trades Committee, Inusah Fuseini, who led the opposition of the bill, argued that the coming into fruition of the law will affect the livelihood of many Ghanaians
His argument was supported by Ho Central MP Benjamin Kpodo and the Ranking Member of the Committee of Transport Governance, Mr Kwame Agbodza.
However, Dr Mark Assibey-Yeboah, who is the Chairman of the Finance Committee, Trades Minister Alan Kyerematen and Information Minister Kojo Oppong Nkrumah, disagreed.
Their argument was that the new automotive law will create many jobs for the teeming youth because of the establishment of the assembling plants of the multinational firms.
The Trade’s Minister on Monday visited the assembling plant of VW at the North Industrial Area in Accra, to have first-hand insight regarding the ongoing work of the automobile giant.
“I assure Volkswagen and its local assembler in Ghana of the full support of the government in creating an enabling environment and incentive framework to make their investment a major success," he said.
Source: Class News
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Thank God finally a law is in place to stop accident write off cars. cars that are written off the roads to be unsafe for the roads are brought to Ghana. only Ghana.
I come again to respond to Hann: do you know what a mortgage is? In Germany, a new car is financed for up to 10 years by a bank or credit union. what is 200 Ghc per month times 10 yrs? So what do you mean a civil servant earning 1800 Ghc can not afford a new car? And by the way, cars are priced based on the economy (compare car prices in Denmark to those in Germany, for the same car its 3x so cars in Gh wont cost 25000$). Our mentality is so different, it has been so seared by second hand ideology that we fail to see the light of this bold decision. Mechanics and fitters’ businesses will only see a dip but they will recover because new cars also break down after some time. People please think more analytically for the Long term.
GHANA IS MAKING HEADWAY YET IT IS RUNNING AHEAD OF IT SHADOW.WHERE ARE PEOPLE GOING TO GET CASH TO BUY THE VEHICLE?LET SAY IF A CAR COST $25000.HOW MANY GOVT WORKERS COULD DOWN PAYMENT?GH 663,750.THIS IS THE TRUTH WHERE WILL A CIVIL SERVANT WHOSE MONTHLY SALARY IS GH1800? PLEASE NANA ADDO COME AGAIN
We are prepared to do everything to support foreign businesses but nothing to support our own. In every country duties are placed on the value of the product, but in Ghana Customs DETERMINE what you must pay for the car you import, making business difficult for importers
I am sad people are not thinking straight. My assessment is that this law will definitely bring some hardship at the beginning, but in the long run, we will get used to buying new cars through proper financing schemes, which in reality, are cheaper than you saving up to buy a 20 yr old second hand car from developed countries. If people are not ready to brace the initial, short-lived 'hardship', when on earth will we progress? Please extend this law to old fridges and electronic devices, which are causing so much arsenic and Lead (Pb) pollution (from burnt circuit boards). Just go to Korle-Bu and ask the the number of patients with kidney failures, yet we want to continue importing poisonous old cars... chai....
So you just ban cars with salvage title just cos companies want to set up plants for manufacturing cars..are you aware that 60% of workers in Ghana cant afford to buy brand new cars and that our system and they pay we receive just wont allow it,and do you know you just havent killed the car business, but spare parts business,body works, spraying companies, mechanics and they have families to feed...Its a good policy but they didnt consider alot of factors..hmmmnn
You are obviously not much of a thinker. Are the car dealers the ones that buy and drive the accident and over-aged cars? SMH. In any case, what proportion of the population are these car dealers for them to rise against the government? If we don't up our game, we shall remain a country of poor people for ever. Are you aware that in South Africa, a hotel receptionist can drive the newest VW by making small monthly payments to the bank/finance company? Is that no better than walking in the sun aaaaa for years to save up lots of money to go and buy a reconditioned over-aged accident car? Think ooooo think!!!
I don't thing these companies will be asking for full payment for new cars but by installments and that is also going to create employment in another form. It will solve some causes of accidents but the others such as road infrastructures must be tackled as well.
in fact, per this law they pass above, may I ask if the current accident that is taking many life is mostly caused by overage cars? car dealers of ghana wake up against akufo ado now since yr business is in danger.
car dealers of ghana pls wake up now since u will be the victims of this law by akufo ado. now u can see the difference between akufo ado and mahama which of them protect your business? in fact, the question is how many Ghanaians can afford brand new cars in ghana? this law only benefits politicians in the first place.akufo ado is the most wicked person on earth.