Stop the thrust on monopolistic towing levy – ILAPI-Ghana

Business News of Saturday, 5 August 2017

Source: Daniel Kaku

2017-08-05

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A policy think tank, Institute for Liberty and Policy Innovation Ghana (ILAPI-Ghana) has joined some Ghanaians who are crying over the passage of towing levy policy into law.

The controversial Mandatory Tow Levy (MTL) is slated to be implemented come end of September 2017.

The law was meant to help clear Ghanaian streets from hazardous parked vehicles.

Background

Parliament recently gave backing for the implementation of the controversial levy to be imposed on vehicle owners.

The law which was to take effect July 1, 2017, was suspended to enable the Transport Ministry to hold stakeholder engagements, following the massive public disapproval it received.

The National Road Safety Commission (NRSC) introduced the service in order to rid the country’s roads of broken down vehicles that are abandoned and which cause accidents.

However, Ghana Committed Drivers Association (GCDA) has served noticed of a nationwide demonstration to push for the repeal of the recently passed mandatory towing levy.

The Association says it is not in favour of the levy and wants the government to halt its implementation.

In a statement signed by the ILAPG-Ghana’s Executive Director, Mr. Peter Bismark Kwofie dated, August 3, 2017 and cited by Daniel Kaku indicated that the Mandatory Towing Levy (MTL) has no technology to track vehicles at no go areas without internet.

He added that a listening government must must incline it ears to the cry of the many. “The towing must be mandatory but out to lead to the choices of items the individual can select from”.

Below is the full statement;

Institute for Liberty &Policy Innovation (ILAPI-Ghana)

3/8/2017

PRESS STATEMENT

Stop the Thrust on the Monopolistic Towing Levy.

Towing off broken and stationary vehicles is really a good approach to muffling off road accidents.

However, the policy may stifle individual choice and cost-effectiveness to subscribers. The monopoly or the oligopoly of the towing levy brings into question the logicality of the mandatory policy to enhance quick response to stimuli.

The road towing levy needs a competitive market for efficiency and would be of high-priority to engage insurance companies with towing company to provide services that may NOT lead to future bigotry.

Drivers and vehicle owners would have the choice to select the insurance company that provide the best objective and credible services to clients.

The mandatory towing levy policy has no technology to track vehicles at no go areas without internet. It stifle innovation, creativity and competition in the economy.

Payment of judgement debt should not form the basis to passing laws that would harm the law abiding citizens and the very vulnerable we claim to solving their problems. Laws must be made to solve problems and not to create one.

A listening government must incline it ears to the cry of the many. The towing must be mandatory but ought to lead to the choices of items the individual can select from.

A legal suit may follow if judgement debt led to the passage of the policy.

Signed!

Peter Bismark Kwofie Executive Director Institute for Liberty and Policy innovation (ILAPI-Ghana)

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