Importers of second-hand cars in Ghana are worried about the government’s policy that requires importers to pay import duties in US dollars.
The association believes that if this policy is not reversed, it could destroy the business of importing second-hand vehicles into the country.
Speaking on behalf of the group, Eric Boateng, the President of the Automobile Dealers Union, explained how this unfair system is impacting businesses.
According to him, while the cost of cars remains consistent on the international market, the imposition of duties at the port, especially in dollars, is having a negative impact on the car business in Ghana.
“Even though they say there is no more COVID, we are still paying COVID levy, COVID transfer levy, network charges, and a lot of import duties currently. Our currency is in Cedis, but if you import a car from Canada, Korea, or Dubai, the government of Ghana will convert the duties into dollars for you to pay,” he stated in an interview with Citi TV.
“… So, if you buy a car from the USA for about $1,000 and bring it to the port, you will end up paying five times that in dollars.”
Meanwhile, the practice of charging import duties in dollars goes against the provisions of the Foreign Exchange Act of the Bank of Ghana, Act 2006 (Act 723), which prohibits unauthorized dealings in foreign currency by the public.
EAN/MA
Source: www.ghanaweb.com