Financial Analyst, Sydney Casely Hayford has commended the government’s decision to ban the importation of used vehicles older than 10 years.
The proposal is part of the Customs Amendment Bill, 2020, which was passed on Tuesday, March 3, 2020, at the second reading stage in Parliament.
The Bill will be fully passed after the amendments are debated as the government has predicted an estimated revenue loss of GHS802 million over the next three years after the review of the policy.
Mr. Casely Hayford believes the new policy, which will also lead to a ban on salvaged vehicles will play a key role in stabilizing the cedi.
“30 percent of our foreign exchange that we spend in this country is from importing second-hand vehicles… So the indirect benefit of a bill like this, of course, is clear – it goes towards stabilizing the cedi,” the Financial Analyst argued.
Opposition to the Bill
The Automobile Dealers Union Ghana is opposed to the government’s new policy which will take effect with the passage of the Customs Amendment Bill.
Concerns have also been raised about the potential job losses among second-hand car dealers as Ghana moves to the next stage of its Automotive Development Policy.
The government has predicted an estimated revenue loss of GHS802 million over the next three years if the various bans are instituted.
This was a point of concern for the MP for Tamale Central, Inusah Fuseini, who called for the withdrawal of the Bill.
“This obviously will be too much for this country. For three years you are losing [almost GHS1 billion]. There is no guarantee that we will be able to reclaim this GHS1 billion through the employment that will be created,” he argued in Parliament.