We are against government's proposed LI to restrict importation of strategic items including vehicles – Car Dealers

The Vehicle and Asset Dealers Union of Ghana (VADUG) and the Chamber of Dealership Ghana (CADEG) has kicked against the government’s proposed legislative instrument to restrict the importation of strategic items including motor cars

According to the two business associations, their discontent is further heightened by the government's failure to conduct thorough stakeholder consultations with them.

“Our discontent is further heightened by the government's failure to conduct thorough stakeholder consultations with The Vehicle and Asset Dealers Union of Ghana (VADUG) and the Chamber of Automobile Dealerships Ghana (CADEG). As representatives of used vehicle importers and dealers, our unions are dismayed by the absence of meaningful discussions, crucial for a comprehensive understanding of the industry's intricacies”, they disclosed in a statement.

Accordingly, they stressed that “our unions, along with our affiliates nationwide, vehemently oppose this proposition. We emphatically disagree with the content of the draft bill and urge all well-meaning Ghanaians, civil society organizations, and members of both the majority and minority in parliament to likewise disapprove and resist its passage”.

The statement pointed out that any implementation of restrictive measures on the importation of motor cars and vehicles into the country is poised to precipitate a severe unemployment crisis, adding, “The extensive network of individuals involved in the industry's value chain would bear the brunt of such a policy shift. Consequently, we firmly disagree with this proposal and strongly advocate for its immediate withdrawal”.

Continued, they said “Our primary concern lies in the envisaged licensing process, which, if exclusively administered by the sector minister, is anticipated to be fraught with challenges and procedural intricacies. We firmly believe that such a system may inadvertently lead to the creation of a monopoly benefiting only a select few, rather than serving the broader interests of the Ghanaian populace”.

“It is essential to recognize the existing challenges within the automobile industry, particularly in relation to tariffs and percentage tax increments. At present, the production capacity of motor cars and vehicles by local assemblers falls short of meeting the demand of the Ghanaian populace, exacerbated by the prohibitive costs associated with these vehicles. We acknowledge the indispensable role played by secondhand motor car importers and dealers in addressing this gap and sustaining the nation's mobility needs”, it concluded.

The government through the Ministry of Trade and Industry has proposed a legislative instrument that seeks to impose restrictions on the importation of 22 strategic items, including motor cars.