By Patrick Biddah
The government’s plan to give a tax rebate to foreign vehicle manufacturers and assemblers under the Customs Amendment 2020 , Act 891, is expected to cost the Ghanaian tax payer a whopping Ghc820,251 785 million .
Sadly, the loss of this revenue in view of tax rebates, is to be passed on to the Ghanaian used import vehicle dealer .
This passing on of Ghc820 million in revenue loss to the Ghanaian used import vehicles dealer is to be undertaken in the implementation of the new Customs Amendment Act, where an increment in import duty to an additional 35percent on used vehicles into the country with the age range of one to five years old has been approved.
The implementation which begins on September 1, this year is coming on the heels of a new Customs Amendment Act and the removal of the Benchmark value which used to cushion vehicle importers.
But the Vehicles and Assets Dealers Union of Ghana (VADUG) has kicked against the implementation of the new Customs Amendment Act 2020, 891 , citing a number of reasons.
At a press conference yesterday, the Executive Secretary of the Union , Frank Atanley Kofigah, said the incentives being given to the manufacturers and assemblers of cars in Ghana is at the expense of the Ghanaian used vehicle car dealer .
“ First of all, the passage of the Act is to provide gargantuan incentives to the Automotive Manufacturers Development Program( GAMDP) whilst making it extremely difficult for used importers of vehicle who have been carrying this industry for over 30 years “, he noted.
VADUG, which sounded peeved, has said that they will resist the implementation of the new Customs Amendment Act especially when negotiations on their concerns and their inputs have not been concluded and included.
According to Mr Atanley Kofigah, the move will throw them out of business and to say the least make life unbearable for them.
For them, the govnement should look at how best it can tame the depreciation of the cedi against the dollar, in order that they can at least plan.
They have among others, asked the government to restore the benchmark value, since its removal has doubled the duty on vehicles.
For example , he indicated that between 2012- 2016 , the duty on a Toyota Corolla was between Ghc14, 000 and Ghc16,000, but after the removal of the benchmark value it has shot up to between Ghc24,000 and Ghc35,000.
The Chairman of the Union , Bernard Ntrakwah, expressed the view that the implementation of the new Customs Amendment Act, will render artisans in the value chair unemployed.
He explained that the 10 year old vehicles which has been banned gave way for the importation of 1 to five year old ones, but the 35percent additional duty will be too high that they can no longer import .
This , he pointed out will affect clearing agents, towing drivers, auto mechanics, washing bays and many others who, are in the value chain of used imported vehicles .
It is estimated that used vehicles dealers import over 100, 000 cars a year into the country.
