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A promise from the opposition Democratic National Congress, NDC, to remove a new law passed by the government of the day to ban the import of salvage cars and used cars no more than ten years old, has rekindled the already existing protest against the law. .
However, in response to the promise of the NDC Manifesto, the Ghana Automobile Dealers Union, Abbosey Okai Spare Parts dealers and some mechanics say they prefer a parts overhaul of the law or a full scrap if that doesn’t. Can be done.
As part of its transformation agenda, the government identified vehicle assembly and automotive component manufacturing as a strategic anchor industry that will promote economic development in the country and provide incentives to automakers.
The government launched the Ghana Automotive Development Policy in August 2019 to promote car manufacturing for both the domestic market and the West African sub-region.
The amendment is part of a broader plan towards the implementation of the Ghana Car Manufacturing Program, which has so far attracted several car assembly plants from around the world to the country.
Subsequently, parliament passed the 2020 Customs Amendment Bill to prohibit the import of salvage cars also known as accidental cars, as well as second-hand vehicles older than ten years.
Currently, most of the cars that are driven on the roads of Ghana mainly fall into this category and are cheaper in cost.
Data available from the Customs Division of the Ghana Revenue Authority indicates that between 2005 and 2016, more than 1 million vehicles were imported into the country, representing an average of 100,000 cars per year. Of this figure, 80 percent were second-hand vehicles.
According to the Abossey Okai Parts Dealers Association, the government has assured various stakeholders that it is sticking with the implementation of the law. In an interview with Citi Business News, co-chair of the Association, said that the Ministry of Commerce and Industry after talks with stakeholders promised to suspend implementation.
“In our last meeting with the Ministry of Commerce, we were assured that the implementation of the law, which was supposed to go into effect on November 1, has been suspended due to the surrounding unrest.”
However, he explained that auto parts dealers were not completely against the law, except that they are concerned about the definition of salvage cars.
“With the ten-year ban on cars, all stakeholders have no problem because we all aspire to the industrialization of the country, but we have problems with the definition of salvage. We believe that if a car has been involved in an accident and the damage is very small, then it should be allowed to enter the country ”.
Former 2020 NDC president and standard-bearer John Mahama has fueled the debate after he pledged to repeal the law during the launch of his party’s manifesto on Monday, September 7.
Secretary of the Union of Automobile Dealers. Clifford Ansu, who spoke to Citi Business News, said that if the incumbent government does not address its concerns with the law, it will support the NDC’s promise to eliminate it entirely.
“We are asking the government to remove areas of the law with which we do not agree, such as increasing the import duty from 5 to 35 percent. if this cannot be done, we are in full support of what Mahama said during the launch of the NDC manifesto to completely remove the law “
A mechanic, who has been in business for 25 years, Mr. Emmanuel Addo, also told Citi Business News that the law should be implemented gradually until Ghana can fully assemble cars locally to meet demand.
“Such a law cannot be implemented all at once. It should be done gradually so that as we assemble enough cars in the country to meet the demand, the old cars gradually fade away because I don’t think anybody in the country wants to buy old cars when there are enough new and affordable cars. The market.”
Disclaimer: The opinions expressed in this article are those of the author and in no way reflect those of the Ghana Crusader.
