Auto dealers urge govt to scrap ‘obnoxious’ taxes, review port fees

The Vehicle and Assets Dealers Union of Ghana (VADUG) is urging the government to speed up a comprehensive auto financing policy. This policy would help banks and financial institutions provide credit to vehicle buyers.

VADUG has also expressed concerns about high port taxes. They criticized the Ghana Revenue Authority’s Customs Division for imposing heavy charges on vehicle importers and consumers.

“Clearing a vehicle at the port can involve over twenty different fees,” VADUG stated. These include Import Duty, Import VAT, GHS Disinfection Fee, COVID-19 Health Recovery Levy, Vehicle Examination Fees, and African Union Import Levy.

Importers must also pay taxes based on the original model year price. Vehicles older than five years face an extra 50% penalty based on this value. However, brand-new vehicles under six months old are exempt from depreciation penalties.

VADUG Executive Secretary Frank Atanley Kofigah called these port fees “obnoxious taxes” needing urgent review. He questioned the relevance of certain charges like the Special Import Levy, which was meant for a specific purpose.

Kofigah highlighted the need for accessible vehicle financing options. He pointed out that in other countries, consumers can secure vehicles with little or no upfront payment if they have valid employment and bank statements.

“In other countries, you can walk into a dealership with zero dollars and still drive out with a financed car,” he said. “Why not here?” he asked.

The Importers and Exporters Association of Ghana supports VADUG’s call for a national vehicle financing scheme. They believe this policy would reduce reliance on older, high-emission vehicles.

Executive Secretary Samson Asaki Awingobit stated that without such a policy, driving will remain a luxury for many people in Ghana. He suggested allowing workers to pay a 15–30% deposit at dealerships and spread payments over several years.