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Institute Tax to Discourage Importation of Old Vehicles

Sun, 8 Jul 2001 Source: Accra Mail

Mr Ernest Asare, Director of Marketing and Communication at the Energy Foundation, has called for a tax structure that would discriminate against the importation of old vehicles.

He said the current formulae for the calculation of import duties favours the importation of vehicles that are eight to 10 years old which are noted for their high consumption of petroleum products.

Mr Asare, who was speaking at a day's seminar on climate change and socio-economic impacts, said import duties must be based on fuel efficiency and age of vehicles instead of engine capacity.

It was organised by the Green Earth Organisation (GEO), an NGO for partners in the environmental sector.

The transport sector alone, he said, accounts for the consumption of over 63 per cent of petroleum products imported into the country and is growing at about six per cent per annum.

"Analysis of a random sample of 15,000 vehicles registered in 1995 and 1996 shows that 96.1 per cent of all the vehicles in the study were used when they were first registered."

Out of this, over 60 per cent were at least 10 years old when they were first registered in Ghana.

Mr Asare also suggested the restructuring of the Vehicles Examination and Licensing Division of the Ministry of Transport to focus on monitoring and enforcing of regulations while the private garages would be responsible for ensuring that vehicles are roadworthy.

The Reverend Steve Nyakotey Quao, from the Meteorological Services Department, announced that more rains are coming and urged Ghanaians to be adequately prepared.

Mr George Ahadzie, Executive Director of GEO, said the increased levels of carbon dioxide in the atmosphere and the constant removal of vegetation cover have been the major causes of global warming.

Mr. Abraham Nunoo, National Information Officer, UN Information Centre, appealed to countries that are going back on measures reached at Kyoto to rethink their positions.

Source: Accra Mail