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AutoData Ghana Slams Government Over Unrelieved Vehicle Import Taxes

2 weeks ago
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The Chamber of AutoData Ghana has raised strong objections to the government’s continued imposition of what it terms “nuisance taxes” on imported vehicles. Their outcry follows the release of the national budget, which offered no tax relief for the automotive sector.

Expressing their disappointment in an interview on Adom FM’s Dwadie Kasae, the Chamber’s Executive Secretary, George Dumenu, and Greater Accra Regional Chairman, Daniel Afari Boateng, criticized the government for sidelining the vehicle import industry in its tax reforms.

According to the executives, importers currently face up to 24 separate taxes and levies on each vehicle, a burden they say is crippling the industry and discouraging growth.

“The government had made prior promises—both in its manifesto and through public statements—to reduce the tax load on our sector,” said Dumenu. “We expected some relief in this budget, but our hopes were dashed.”

They emphasized that the high tax regime not only makes vehicle imports less viable for businesses, but also drives prices beyond the reach of the average Ghanaian. As a result, more people are turning to used, locally rebuilt, or substandard vehicles—raising concerns about road safety.

“This trend could increase the risk of accidents, as poorly reconstructed cars are often not roadworthy,” warned Afari Boateng.

Another major challenge cited by the Chamber is the volatility of exchange rates, which makes planning and budgeting for vehicle imports difficult. To address this, they proposed the introduction of a fixed exchange rate window for calculating import duties, offering stability and predictability for importers.

Despite government support for international car brands like Volkswagen and Nissan to assemble vehicles locally, the Chamber argues that these initiatives have yet to make a significant impact due to low production volumes and high prices, which still place locally assembled cars out of reach for many buyers.

In conclusion, the Chamber of AutoData Ghana is urging the government to re-evaluate its tax policies in the automotive space, insisting that a fairer, more predictable tax regime could actually increase imports—and in turn, raise government revenue.

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