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Reduce benchmark values on import used cars - Concerned Used Car Dealers to gov't

Business & Finance Reduce benchmark values on import used cars - Concerned Used Car Dealers to gov't
JAN 19, 2023 LISTEN

The Vehicles & Assets Dealers Union (Used Car Dealers) says the business of its members will collapse if government go ahead with the reversal of benchmark values on imported used vehicles.

The Ghana Revenue Authority announced the complete reversal of the benchmark policy effective 1st January 2023.

The policy which was implemented in 2019 saw a 50% reduction in the benchmark value of some 43 imported items and 30% on cars.

However, the Association lamented that the move will shoot up the already high taxes on import duties coupled with cedi depreciation.

In an interview with this reporter, some used car dealers in Kumasi noted that their businesses were improving until the 30% benchmark value on car import duties was reversed.

According to the car dealers, they are now paying 100% import duties on used cars — a move, they claim was attempted to flush them out of the system to give way to companies that have set up their plants in Ghana to assemble and sell brand new vehicles.

"The indirect tax system allegedly imposing on us is definitely killing our businesses," a car dealer told our correspondent.

The dealers indicated that they have contributed positively towards national development, especially by creating jobs to employ idle youth.

They stressed that as businessmen they hardly oppose government policies on industrialization, therefore government must encourage the private sector to do more to help restore the ailing economy.

The used car dealers are appealing to the government to reduce import duties on used cars to sustain their business.

King Amoah
King Amoah

Ashanti Regional CorrespondentPage: KingAmoah

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