NDC will scrap law banning importation of salvaged vehicles-Mahama
The flagbearer of the National Democratic Congress, John Dramani Mahama, says his government will scrap the law banning the importation of salvaged vehicles if he wins the December 7 polls.
The decision, he said, was informed by the need to sustain the local automotive industry.
“We will review the customs amendment act, 2020, Act 1014 to scrap the law banning the importation of salvaged vehicles, and the proposed imposition of 25% import duty rates.
“We are going to scrap it in order that salvaged vehicles are not banned and the top duty that the government proposes to impose on these vehicles does not happen.
“This is to save the local automotive industry so that our people in Suame Magazine, Kokompe, Abossey Okai to continue to work to earn a decent living,” he said at the launch of the party’s 2020 manifesto.
He said his administration would encourage vehicle assembly plants “investing in Ghana to complement our local industries not to cancel our local industries.”
The government this year amended the Customs Act, 2015 (ACR 891) to provide incentives for automotive manufacturers and assemblers under the Ghana Automotive Manufacturing Development Programme, prohibit the importation of salvaged motor vehicles and specific vehicles over ten years old into the country.
It will prohibit the importation of salvaged motor vehicles comprising wrecked, destroyed, or physically damaged by collision, fire, water or other occurrences and specified motor vehicles of over 10 years into the country.
The law is also expected to 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.
The government is counting on the Ghana Automotive Manufacturing Development Programme to develop and grow a vibrant auto industry in Ghana.
It has signed memoranda of understanding (MoU) with auto giants including Toyota, Nissan and Volkswagen.
The MoUs with the auto giants followed the government’s announcement of the Ghana Automotive Manufacturing Development Programme (GAMDP), which the Nana Akufo-Addo administration hopes will, among other things, generate high-quality skilled jobs in manufacturing, offer an import substitution and export promotion to improve the balance of payment.
Apart from safeguarding the environment, the policy is also expected to improve road safety in the country and guarantee higher asset value for vehicle buyers, financier, insurers, and transform the quality and safety of the national road transport fleet.
President Akufo-Addo on August 3 unveiled the first fruit of Ghana’s auto policy as VW Ghana opened its vehicle assembly plant in Ghana.
But there is an opposition to the policy with the Coalition of Car and Spare Parts Dealers within Tema, Spintex, and Ashaiman kicking against the policy.
By amending the act, Ghana traded off more than GHc 800 million it got from vehicles import duties, according to figures from Parliament.