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VADUG & CADEG kicks against government’s proposed LI to restrict importation of motor cars

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Story by: Ishmael Barfi



The Vehicle and Asset Dealers Union of Ghana (VADUG) and the Chamber of Automobile Dealerships Ghana (CADEG) has expressed their disapproval of government’s proposed legislative Instrument (L.I) to restrict importation of strategic items including motor car.

According to the two Union bodies, their discontent is further heightened by the government’s failure to conduct thorough stakeholder consultations respective affected industry player including them.

“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 lamented.

This was disclosed in a press release issued on Wednesday, 29th November, 2023 and jointly signed by Mr. Bernard Ntrawah, Chairman of Vehicle and Asset Dealers Union of Ghana (VADUG) and Nana Adu Bonsu Agyekum, President of Chamber of Automobile Dealership Ghana (CADEG)  in Accra.

The release further explained that, their 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.

Adding that, “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”.

To them, it is essential to recognize the existing challenges within the automobile industry, particularly in relation to tariffs and percentage tax increments.

Indicating that, presently, 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.

In that view, the release acknowledge the indispensable role played by secondhand motor car importers and dealers in addressing this gap and sustaining the nation’s mobility needs.

To that effect, “Any implementation of restrictive measures on the importation of motor cars and vehicles into the country is poised to precipitate a severe unemployment crisis”, the release reiterated.

“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”, it affirmed.

Therefore called on all well-meaning Ghanaians, civil society organizations, and members of both the majority and minority in parliament to likewise disapprove and resist its passage.

“Accordingly, our unions, along with our affiliates nationwide, vehemently oppose this proposition. We emphatically disagree with the content of the draft bill”, it concluded.

The Minister of Trade and Industry, Hon. K.T Hammond, on behalf of the government, recently introduced a draft bill before the Parliament of Ghana.

This proposed legislative instrument seeks to impose restrictions on the importation of 22 strategic items, including motor cars.