Businesses and individuals who import cars into Ghana have called on all Ghanaians to sign an online petition that will compel the government to reduce the excessively high used car import duties imposed on cars.
The high import duties slapped on used cars by the government have led to increased prices of used cars in the country.
Reduce excessively high used car import duties in Ghana -Full Details of the petition
According to the petition details, a Benchmark Value Discount Policy was introduced by the government of Ghana in 2019.
Within its framework, the government provided a 50% discount on the benchmark (delivery) values of a number of imports except for vehicles (to which a discount of 30% was applied). The Benchmark Value Discount policy pursued the objective of increasing the competitiveness of the Ghanaian ports. This move improved economic activities in the used car industry; car sales, vehicle insurance, vehicle repairs and parts sales, ride-hailing, etc.
Unfortunately, On 4 January 2022, the government of Ghana revised the Benchmark Value Discount policy, leading to an increase in import duties; completely removing discounts on used cars as a move to create an enabling environment for local businesses to thrive and to promote the assembling of brand new cars in Ghana.
The Association of Ghana Industries (AGI) with other stakeholders pushed the government to reverse the discount policy.
Add your voice by going here to sign the petition.
But the negative counter-effect is that the local manufacturing companies (AGI members) still need some raw materials and equipment that have to be imported. As such, the reversal of the benchmark value discount policy directly and negatively affects their cost of production thereby increasing the cost of goods instead of making them more competitive. So both prices of local and imported goods are greatly increased after the reversal.
The companies that have set up vehicle assembling plants in Ghana are largely owned by foreign entities, and they sell expensive vehicles that most Ghanaians cannot afford.
Owning a vehicle has become very expensive. We need to change this immediately in order to ensure that; (1) Ordinary ghanaian workers can afford to drive decent cars without using one’s life savings to pay import duty, (2) the used car industry does not collapse since it provides jobs for a lot of Ghanaians; dealers, sprayers, insurers, welders, mechanics, rental companies, parts dealers( “Abossey Okai”) etc.
Add your voice by going here to sign the petition.
The government is losing revenue because the ports are empty. The economy has become worse off. The growth rate has slowed down. If the reversal was meant to increase revenue then it is not working. It has only brought untold hardship to Ghanaians. So why not restore the discount?
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Due to the above, all and sundry have been invited to add their voice to the call. The Reduce Excessively High Used Car Import Duties in Ghana Petition has been signed by not less than 1,000 individuals. The target of the petition is to reach 1500 people.
Add your voice by going here to sign the petition.