The Vehicle and Assets Dealers Union of Ghana (VADUG) has expressed utter dismay over government’s resolution to slap a 35% penalty on duty on imported used autos that are between one to 5 years previous.

The dealers who’re already paying high duties on such autos said the brand new policy will collapse their companies in favour of car manufacturing and assembling corporations within the country.   

Deputy General Secretary of the dealers, Clifford Ansu, disclosed this to Joy Business at a gathering in Tema with Assin Central MP, Ken Agyapong on Customs (Amendment) Act 2020, Act 891.  

“The amendment intends discouraging importation of secondhand vehicles and encourage automobile assemblers”.

“We’re against this aspect of the law. For instance, a vehicle between 1-5 years attracts a penalty of 35% on duty. We’re even struggling with the existing duty and when it is implemented before the year ends, it will surely collapse our business,” he cited.

Amended Act 891 goals to supply some incentives to vehicle producers and assemblers registered under the Ghana Automotive Manufacturing Development Programme, ban the importation of salvaged motor autos and particular motor autos over 10 years of age amongst others.

 In 2019, the Ghana Automotive Manufacturing Development Programme was launched in a bid to promote vehicle manufacturing within the country, feeding the native and West African markets and contributin to the country’s financial system.

This policy in its first three years is anticipated to cost ¢802,251,785 in customized duties and taxes with extra income from duties on autos not lined by the programme.

1
2
3
4
Previous article7 Signs Your Boyfriend Is Not Serious About Your Relationship
Next article2022/23 betPawa PL: We will build from Karela United win – Accra Lions coach James Francis