Kennedy Agyapong, the member of parliament for Assin Central, has expressed regret over the government’s plan to impose a 35% tariff penalty on imported secondhand cars that are one to five years old.
He claims that since not every Ghanaian can afford a brand-new car, the act is unfair.
Additionally, he said that if the government wants to promote local investment, it shouldn’t come at the expense of companies.
There are used car companies everywhere the manufacturing and assembly firms are based, but why don’t they ask their governments to impose greater tariffs on used cars?
“This is clearly due to the fact that not everybody can buy a brand-new car. If you have locals dealing in used cars, you don’t come up with punitive measures because you’re asking automobile companies to invest in Ghana,” he is quoted by myjoyonline.com.
Kennedy Agyapong also bemoaned the waivers foreign businesses are given whiles citizens are made to pay huge taxes.
“How can you slap an additional 25% on 1-5 years cars and leave 6-10 years cars? We must always put the citizens first in every decision we take as this is the case in every country. It’s quite unfortunate that it is only in Ghana we tend to put foreigners ahead of our own people,” he said.
However, the Vehicle and Assets Dealers Union of Ghana (VADUG) has stated its displeasure over the introduction of the penalty.
Deputy General Secretary of the dealers, Clifford Ansu, according to myjoyonline reports said, “We’re against this aspect of the law. For instance, a vehicle between 1-5 years attracts a penalty of 35% on duty. We’re even struggling with the existing duty and when it is implemented before the year ends, it will surely collapse our business.”