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Business News of Thursday, 13 February 2020

Source: classfmonline.com

Auto dealers kick against overaged car ban

Cars at a displays Cars at a displays

The Ghana Automobile Dealers Association is kicking against the government’s plan to ban the importation of cars older than 10 years into the country.

The association, on Monday, 17 February 2020, will hold a press conference to state its position on the matter.

The Customs Amendments Bill is already in Parliament and when passed, will regulate the importation of vehicles into Ghana.

Currently, overaged vehicles are allowed into the country after payment of a penalty.

The motive behind the intended ban is to help reduce carnage on the roads.

Speaking at a media encounter in Parliament, Majority Leader Osei Kyei-Mensah-Bonsu explained that the decision by many automobile companies to establish outlets in Ghana has informed amendments to Ghana’s laws on overaged and accident vehicles.

But the President of the Ghana Automobile Dealers Association, Eric Kwaku Boateng, said a ban contravenes sections of the automobile policy which gives room for 10-year-old cars and salvaged vehicles.

“Our brother Kyei-Mensah-Bonsu came out that they are coming to ban second hand vehicles and I’m urging him to come again; that is not what we discussed, that is not what we’ve been told. What I know is that 1 up to 10-year-old cars, you can import those cars into the country, so, on Monday, the union is going to have a press conference; they should come and collapse our business”, said Mr Boateng.

“We will fight to the end, so, I don’t think we will get there because I’m part of the committee. If it is that, then he didn’t regard the committee as we the second-hand dealers who represented, that is not what we agreed on”, he added.

When second-hand vehicles are banned, many Ghanaians whose income are low may not be able to purchase new vehicles.

This is because the auto loan facility available may not meet the income levels of Ghanaian workers.