Parliament finally passes bill to ban importation of ‘accident cars’

Business News of Wednesday, 5 August 2020

Source: Pulse Ghana

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Parliament has passed a Customs Bill to ban the importation of old vehicles into the country. The new bill, if assented by the President, will stop the importation of what’s popularly known as ‘accident cars’ in Ghana.

The amendment is part of a bigger plan towards the implementation of the Ghana Automotive Manufacturing Programme, which has so far attracted several global car assembly plants into the country.

The law seeks to provide incentives for automotive manufacturers and assemblers, registered under the Ghana Manufacturing Development Programme.

A clause in the amendment empowers the Minister of Finance to specify the date on which the ban will come into force.

The document will finally become law after the president assents to it.

Finance Minister, Ken Ofori-Atta A Deputy Finance Minister, Abena Osei Asare, quoting the report of the Committee, said “the amendment of the Customs Act, 2015, (Act 891) is to provide incentives for automotive manufacturers and assemblers registered under the Ghana Manufacturing Development Programme (GAMDP), prohibit the importation of salvaged motor vehicles and specified motor vehicles over ten years of age into the country, increase the import duty on specific motor vehicles and provide import duty exemptions for the security agencies and officers of the security agencies”.

Government has predicted an estimated revenue loss of GH¢802 million over the next three years after the review of the policy. This is however expected to be partially offset by the additional revenue from customs duties on vehicles not covered by the programme, according to the joint report of the joint committee on Finance and Trade, Industry and Tourism.

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