Car Dealers Express Disappointment in Second-Hand Cars Ban

Car dealers say government has disregarded their pleas to abort the Law

Car Dealers Express Disappointment in Second-Hand Cars Ban
Car Dealers Express Disappointment in Second-Hand Cars Ban

Car dealers have expressed disappointment in the approval of the Customs Amendment Bill, which bans the importation of “second-hand” cars older than ten years.

The Automobile Dealers Union continue to kick against the Bill even after it was passed by Parliament on Thursday on March 12, 2020.

The Customs Amendment Bill, will prohibit the importation of salvaged motor vehicles comprising wrecked, destroyed, or physically damaged by collision, fire, water or other occurrences as well as "used" motor vehicles over 10 years of age into the country

The Automotive Dealers Union, described the Bill which as ‘unfortunate’ and detrimental to the car sales industry.

They insist that it will lead to massive job losses contrary to what the government has said.

In an interview with Eyewitness News, General Secretary of the Automobile Dealers Union, Clifford Ansu, lamented government’s disregard for their pleas and bemoaned the negative impacts the implementation of the Bill will have on their already struggling businesses.

 “Our position is clear on this matter. We said earlier on that if a car is totally damaged, we are not going to bring those cars into this country because nobody will use his money to buy completely abandoned vehicles and import it into Ghana for sale.

 

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"Those already damaged here, we have people who get the spare parts, bring them down and people buy for use. Government says the [Bill] will create employment, but we don’t have a problem with it if the assemblers come and establish their outlets here. But we are looking at the number of people who are going to lose their jobs.”

“We the dealers have about two million employees. So now where are we going to put them if we ban the import of these vehicles? The government is going to lose GHS802 million in revenue and it wants us to pay 35 percent in addition to what we always pay,” he noted.

The Union had earlier threatened to embark on demonstration against the bill before it was passed, but later rescinded the decision and opted for dialogue.

The managing director of De-Georgia Motors and member of VADAG, George Dwumor in an recent interview with Rainbow Radio mentioned that the BIll if finally passed, would prevent low-income earners from owning cars since the affordable second-hand cars will be banned.

 “When you go to our neighbouring country like Togo, all cars are allowed to be imported with little or no duty. Due to this both, the rich and poor can afford a car. The situation will be different in Ghana if the [customs amendment bill] is passed” he stated.

He said the move by the Akufo-Addo led government will cripple the economy and affect dealers in the sector.

The Automotive Dealers Union bemoaned that, in spite of all their pleas, government still decided to pass the Bill which might collapse their businesses.