Customs given the option to sell over aged cars

The Government has decided to give the Customs, Excise and Preventive Service the option to auction confiscated over-aged cars instead of selling them to the steel mills as scrap metal for recycling.

Mr. Yaw Osafo- Maafo, Minister for Finance told Parliament on Tuesday when contributing to a Motion that the CEPS (Management) (Amendment) Bill was read for the second time.

He said the new amendments proposed to the Bill seek to discourage the importation into the country very old vehicles since such vehicles not only pollute the environment but also cause accidents. The Amendments of Section 89 (A and B) proposed to increase the penalty rates by substituting five per cent and 20 per cent for 15 per cent and 30 per cent respectively.

Mr. Osafo-Maafo said the amendment was in line because it would go a long way in supporting the economy to grow, adding that such penalties would debar people from bringing in over-aged vehicles. He said the graduation was to also discriminate in favour of passenger buses, tipper and cargo trucks because the country needed the services of such vehicles.

Some members were of the opinion that some of the amendments were ambiguous and did not give a clear ceiling on the number of years for an-over aged vehicle such as section 89 (1 a) which states that where a vehicle is more than 20 years old, there shall be paid a penalty of 50 per cent value of Cost In Freight (CIF) value of the vehicle.

Mr. Doe Adjahoe, Deputy Minority Chief Whip and Dr. Kwabena Adjei, NDC- Biakoye and Mike Gizo, NDC-Shai/Osudoku all expressed concern about the amendments

They said that junks or over-aged vehicles should not be imported into the country with the excuse that most people could not afford to buy new cars. Mr Gizo suggested the revival of vehicle assembly plants to cater for mechanical repairs of vehicles instead of allowing the flooding of the market with shoddy vehicles.

Mr Kwadwo Baah-Wiredu, Minister for Local Government and Rural Development said there are a lot of people, especially in the rural areas who lack transport and would have to be assisted with the importation of such vehicles for mass transportation. He said the old Bill was also discouraging most Ghanaians living abroad from acquiring and bringing down some affordable vehicles for their use.

Mr Mike Hammah, NDC-Effutu said the issue of over-aged vehicles should not be brushed aside since it turns to discourage local mechanics from their vocations as the importation of parts was putting them out of business.

He said the Ministry for Finance should not only be concerned about revenue generation but it should also look at the effects of the importation of such vehicles, which he said, would invariably worsen the health and environment problems of the country.

Mr Eugene Atta Agyepong, Chairman of the Finance Committee said members considered to delete sub-section 89 (3) because in their view, motor cars over

15 years must not be allowed into the country and if anyone imports a motor car, which is more than 15 years of age it should be confiscated to the state without the option of paying any penalty.

The Committee also decided to put the age of commercial vehicles such as trucks, lorries and tipper trucks into four categories. The amendments proposed are that where a vehicle is more than 10 years old but not more than 12 years old, importers shall be made to pay a penalty of five per cent of the CIF value of the vehicle.

Where the vehicle is of more than 12 years old but of not more than 15 years there shall be a penalty of 10 per cent, where the vehicle is more than 15 years old, but not more than 20 years old there shall be a penalty of 15 per cent and where it is 20 years old, there shall be a penalty of 50 per cent of the Cost in Freight value of the vehicle.