Vehicle buyers lament ‘obnoxious’ taxes at the ports
The Vehicle and Assets Dealers Union of Ghana (VADUG) has expressed frustration over the numerous taxes vehicle dealers must pay at the ports to clear their goods.
According to the union, the taxes imposed on vehicle buyers are “unnecessary” and overly expensive.
These charges include Import Duty, Import VAT, the GHS Disinfection Fee, the COVID-19 Health Recovery Levy, Vehicle Examination Fees, and the African Union Import Levy, among others.
The Executive Secretary of VADUG, Frank Atanley Kofigah, described the fees at the ports as “obnoxious.”
“If you’re a customer clearing a vehicle at the port, be prepared to pay over twenty different fees.
“When you go in there now, you have to deal with the GHS Disinfection Fee and the Special Import Levy. That 2% levy, what is it even for? It was introduced for a specific purpose. Is that purpose still relevant? We need to critically examine these charges,” he said, as quoted by citinewsroom.com.
VADUG emphasised the need for the government to fast-track the implementation of a comprehensive auto-financing policy that would allow banks and financial institutions to offer credit facilities to vehicle buyers.
They argued that, in addition to paying for insurance and freight costs, buyers are also required to pay taxes based on the vehicle’s original model year purchase price, regardless of when the vehicle was actually purchased.
Under Ghanaian law, vehicles older than five years attract an additional 50% penalty based on the original value, while brand-new vehicles under six months old are exempt from depreciation-related penalties.
The Executive Secretary also highlighted Ghana’s lack of a proper vehicle financing system.
“In other countries, if you’re employed, you can walk into a dealership with zero down payment and just a valid appointment letter and still drive away in a financed car. Why not here?” he questioned.
SSD/MA
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