Parliament has passed the Customs Amendment Bill 2020 which seeks to provide incentives to automotive manufacturers and assemblers in Ghana.

The law will in effect ban the importation of used cars older than ten years as well as salvaged or accident vehicles.

The Bill earlier faced stiff opposition from the Minority in parliament and vehicle dealers across the country.

The Vehicle and Asset Dealer Association of Ghana (VADAG) expressed displeasure over the plan by government to ban the importation these ‘old cars’ arguing that , the directive would prevent low-income earners from owning cars since the affordable second-hand cars will be banned

However, Parliament, after scrutinizing the document approved the bill.

Government believes the amendment will boost the Ghana Automotive Manufacturing Programme which has so far attracted several car assembling plants into the country.

The Chairperson of the Parliamentary Roads and Transport Committee, Samuel Ayeh-Paye, explained that, the ban on second-hand cars through the Customs (Amendment) Bill, will help Ghana’s economy by boosting exports.

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“We are trying to move from Guggisberg economy to a modern economy where we will add value to our raw materials for exports. By this, we are trying to reduce importation of some things and manufacture them in Ghana. Hence we are encouraging the establishment of automobile assembly plants in Ghana (with the bill)” he said in an interview with Rainbow radio.

A clause in the amendment empowers the Minister of Finance to specify the date on which the ban will come into place.

The document will finally become law after the president assents to it.

In objection to the passed Bill, The MP for Tamale Central, Inusah Fuseini, called for the withdrawal of the Bill because of the financial implications and the potential loss of jobs associated with its implementation.

“There is a large body of Ghanaians whose business is second-hand vehicle dealing and they were represented at the joint committee meeting. They raised the point that this Bill… does not offer second-hand vehicle dealers any protection.”

He also said the second-had car dealers deserved to be allowed to “bring in their vehicles and compete with the vehicles that will be manufactured by the automobile assembly.”