An amendment of the Customs Bill 2020 will result in a huge loss of revenue of approximately GH¢802, 251,785 for the first three years of implementation.
This was revealed after a Joint Committee on Finance and Trade, Industry and Tourism met to deliberate on the Customs (Amendment) Bill 2020 proposal presented before Parliament by Deputy Finance Minister, Abena Osei Asare.
According to stakeholders, the Bill seeks to amend the Customs Act, 2015 (Act 891) to provide incentives for automotive manufacturers and assemblers registered under the Ghana Automotive Development Policy (GADP), prohibit the importation of salvaged motor vehicles and specified motor vehicles over ten years of age into the country, increase the import duty on specific motor vehicles and provide import duty exemptions for the security agencies and officers of the security agencies.
“As to how much revenue will be impacted by the passage of the Bill, the Committee was informed that the review in policy as contained in the Bill would lead to an estimated loss of approximately Eight Hundred and Two Million, Two Hundred and Fifty-One Thousand, Seven Hundred and Eighty-Five Ghana Cedis (GH¢802, 251,785) for the first three years,” the statement by the Committee read.
“This is, however, expected to be partially offset by the additional revenue from customs duties on vehicles not covered by the programme.”
There have been some agitations by second-hand car dealers who threatened to protest against government’s intention to ban the importation of some category of second-hand and salvaged vehicles into the country.
Meanwhile, the Minority in a debate argued that the ban on the second-hand cars will collapse business and further implicate the unemployment situation in the country.
Member of Parliament for Tamale Central Constituency, Alhaji Inusah Fuseini expressing displeasure about the amendment stated, “There is a large body of Ghanaians whose business is second-hand cars…This amendment bill does not offer second hand dealers any protection. Don’t throw them out of business.”