Government urged to review upwards 35% tax imposed on imported vehicles aged 1-5 years

The government has been urged to review upwards the 35 percent tax imposed on imported vehicles aged one to five years.

The Chief Executive Officer (CEO) of Volkswagen (VW) Ghana, an automobile company, Jeffery Oppong Peprah, who made the call said that would help increase the patronage of locally assembled vehicles.

Peprah said this on Monday during a media interview at the launch of the new VV Amarok pick-up model vehicle by VW Gha­na, which is assembled in Ghana.

He said the assembling of ve­hicles locally was increasing under the Ghana Automotive Develop­ment Policy (GAFP).

Peprah said VW Ghana, at the beginning of the GAFP policy in 2020, could assemble four to six vehicles, but was currently doing nine vehicles.

The GADP aims to establish a competitive automotive assembly hub in the country with the goal of creating jobs, making vehicles more affordable, improving vehicle safety and environmental standards, strengthening Ghana’s position in the West African automotive industry, and reducing the reliance on used cars.

It also covers manufacturing of passenger cars, light commercial vehicles, medium and heavy duty commercial vehicles, buses, and Sports Utility Vehicles (SUVs).

“When VW started with the assembling of cars at the beginning of the GADP policy in 2020, we had about four to six assembling vehicles. At the moment, we have about seven to nine assembling vehicles here. Which tells you that the market is progressing”, Peprah stated.

He said the assembling of cars locally was helping address the current situation where the country relied on imported used cars to meet its vehicle needs.

Peprah said the decision to introduce the new VW Amarok pick-up vehicle assembled locally was as a result of the topography of Ghana and the type of fuel used in the country, which were suitable for the new vehicle.

He also underscored the impor­tance of integrating the informal sector into the automobile indus­try, saying “We have our people at Suame Magazine, Abbosey Okai, and all these places. We feel that we need these men also to be part of the industry because with the new technologies coming on, they need to adapt.”

Peprah disclosed that the vehicle assembling companies were engaging the government and other key stakeholders, including the Bank of Ghana (BoG), to have a specialised or incentiv­ised loan system for those who purchased locally assembled products.

The first new VW locally as­sembled vehicles were unveiled by President Akufo-Addo on Monday, August 3, 2020, at the Kempinski Hotel in Accra.

The models of vehicles being assembled by VW Ghana were Tiguan, Teramont, Amarok, Caddy, Polo, and Passat.