The Chamber of AutoData Ghana has voiced strong concerns over the government’s failure to eliminate what it describes as “nuisance taxes” on vehicle imports.
Following the release of the national budget, the Chamber expressed disappointment that the automotive sector was left out of the tax relief measures announced by Finance Minister Dr. Cassiel Ato Forson.
The Executive Secretary, George Dumenu, and Greater Accra Regional Chairman, Daniel Afari Boateng, spoke on the excessive levies imposed on vehicle imports during an interview on Adom FM’s Dwadie Kasae.
The executives revealed that imported vehicles are subjected to as many as 24 different taxes, making car importation increasingly unsustainable and stifling business growth.
“The automotive industry had high hopes following government assurances and political manifesto pledges to ease the tax burden. However, the latest budget failed to address our concerns, leaving industry players frustrated,” they both lamented.
They highlighted that one of the major challenges facing the automotive industry is excessive taxation and multiple levies.
“These make imported vehicles unaffordable for the average consumer, and we were disheartened that despite the government’s broader commitments to tax relief, none of these levies were reduced or eliminated.”
They further explained that the rising costs of vehicle imports have led to fewer car shipments, pushing consumers toward used, locally assembled, or even reconstructed vehicles.
The Chamber warned that this could lead to increased road accidents due to the risks associated with poorly reassembled cars.
Another concern raised by the executives was exchange rate instability, which makes it difficult for importers to plan effectively.
The Chamber is suggesting that the government introduce a fixed exchange rate window for vehicle import duties to provide more predictability.
“Our argument is that a fairer tax regime would encourage more imports, ultimately boosting government earnings in the long run.”
The Chamber acknowledged government support for multinational assembly plants like Volkswagen and Nissan but pointed out that local production volumes remain too low to meet demand.
Additionally, the cost of locally assembled vehicles remains prohibitively high for many Ghanaians.
The Chamber of AutoData Ghana is urging the government to reconsider its taxation policies in the automotive sector.
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