FOR IMMEDIATE RELEASE
VEHICLE AND ASSET DEALERS UNION OF GHANA (VADUG) AND CHAMBER OF AUTOMOBILE DEALERSHIP GHANA (CADEG) EXPRESSES STRONG DISAPPROVAL OF GOVERNMENT’S PROPOSED LEGISLATIVE INSTRUMENT TO RESTRICT IMPORTATION OF STRATEGIC ITEMS, INCLUDING MOTOR CARS
Accra, 29th November – The Vehicle and Asset Dealers Union of Ghana (VADUG) and the Chamber of Automobile Dealerships Ghana (CADEG) wish to officially convey our collective dissent in response to the recent proposal by the Minister of Trade and Industry, Hon. K.T. Hammond, on behalf of the government, to introduce a draft bill before the Parliament of Ghana.
This proposed legislative instrument seeks to impose restrictions on the importation of 22 strategic items, including motor cars.
Our discontent is further heightened by the government’s failure to conduct thorough stakeholder consultations with the Vehicle and Asset Dealers Union of Ghana (VADUG) and the Chamber of Automobile Dealerships Ghana (CADEG).
As representatives of used vehicle importers and dealers, our unions are dismayed by the absence of meaningful discussions, crucial for a comprehensive understanding of the industry’s intricacies.
Accordingly, our unions, along with our affiliates nationwide, vehemently oppose this proposition.
We emphatically disagree with the content of the draft bill and urge all well-meaning Ghanaians, civil society organisations, and members of both the majority and minority in parliament to likewise disapprove of and resist its passage.
Our primary concern lies in the envisaged licensing process, which, if exclusively administered by the sector minister, is anticipated to be fraught with challenges and procedural intricacies.
We firmly believe that such a system may inadvertently lead to the creation of a monopoly benefiting only a select few rather than serving the broader interests of the Ghanaian populace.
It is essential to recognise the existing challenges within the automobile industry, particularly in relation to tariffs and percentage tax increments.
At present, the production capacity of motor cars and vehicles by local assemblers falls short of meeting the demand of the Ghanaian populace, exacerbated by the prohibitive costs associated with these vehicles.
We acknowledge the indispensable role played by secondhand motor car importers and dealers in addressing this gap and sustaining the nation’s mobility needs.
Any implementation of restrictive measures on the importation of motor cars and vehicles into the country is poised to precipitate a severe unemployment crisis.
The extensive network of individuals involved in the industry’s value chain would bear the brunt of such a policy shift. Consequently, we firmly disagree with this proposal and strongly advocate for its immediate withdrawal.
Thank you.
