Car Dealers Enraged over Plan to Ban Importation of “Old Cars”

car dealers clamor against ban on importation of old and used vehicles

Car Dealers Enraged over Plan to Ban Importation of “Old Cars”
Wrecked vehicles to be imported

The Vehicle and Asset Dealer Association of Ghana (VADAG) has expressed displeasure over the plan by government to ban the importation of used cars older than ten years into the country.

They bemoaned that the move by the Akufo-Addo led government will cripple the economy and affect dealers in the sector.

The managing director of De-Georgia Motors and member of VADAG, George Dwumor in an interview with Rainbow radio today called for the withdrawal of the Customs (Amendment) Bill, 2020 which sought to provide incentives to car manufacturers and assemblers in Ghana.

He noted that, the directive if finally passed, would prevent low-income earners from owning cars since the affordable second-hand cars will be banned.

”To be very honest, this directive will not be beneficial to us as a country,”

“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.

 

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The ban will prohibit the importation of salvaged motor vehicles comprising wrecked, destroyed, or physically damaged by collision, fire, water or other occurrences as well as specified motor vehicles over 10 years of age into the country.

It will also increase the import duty on specific motor vehicles and provide import duty exemptions for the security agencies and officers of the security agencies especially those who go on various assignments and peacekeeping in the security interest of Ghana.

According to Mr Dwumor, the car manufacturing companies that have shown interest in establishing factories in Ghana, for which the amendment bill is being considered, are brands that are not being patronized in Ghana. He argued that, this in a way makes the proposed bill unbeneficial.

He called on the government to reconsider their decision as car dealers and importers will suffer greatly.

He asserted that the association will do everything possible to resist the ban until the bill is withdrawn.

”The ban is not possible. We are going to resist it. They have to rescind the decision,” he added.