Stay united to grow auto industry – Gomoa Central MP
The Member of Parliament for Gomoa Central, Mr Kwame Asare Obeng, has called on members of the Vehicles and Assets Dealers Union of Ghana (VADUG) to remain united and work together to strengthen Ghana’s automobile industry.
According to him, Ghana’s automobile market remained a profitable and promising business venture despite the challenges confronting dealers.
Speaking at a meeting with members of the union yesterday, Mr Obeng stressed that solidarity among vehicle and asset dealers was essential for addressing challenges within the sector, improving business opportunities and contributing to national economic growth.
He commended the government for engaging stakeholders and taking steps to address concerns within the industry, describing the support as significant and encouraging.
Mr Obeng urged members of VADUG to support one another, uphold professionalism, and collaborate in promoting the interests of the automobile sector across the country.
He noted that unity within the union would enhance the credibility of the industry, attract investment, and create a more conducive environment for business growth.
“Government’s commitment to engaging stakeholders and addressing key concerns within the automobile industry will help create a more favourable business environment for vehicle dealers across the country,” he said.
Mr Obeng encouraged dealers to maintain high standards of transparency, integrity, and professionalism in their operations.
He assured them of his readiness to champion their concerns in Parliament and work closely with relevant government institutions to find lasting solutions to challenges affecting the industry.
The General Secretary for VADUG in Tema, Mr Kofi Asamoah raised concerns over what he described as increasing pressure on local dealers from foreign automobile companies, particularly Chinese brands operating in Ghana.
He alleged that some foreign automobile firms enjoy tax incentives and duty exemptions on vehicle assembly kits, giving them an unfair advantage over local dealers who pay import duties ranging between 35 and 50 per cent on used vehicles imported from Europe, the United States, and Japan.
Mr Asamoah called on government to review import tax policies, enforce provisions of the Ghana Investment Promotion Centre (GIPC) Act relating to retail trade, and strengthen regulations to prevent Ghana from becoming a destination for substandard vehicles.
He expressed strong reservations about the Ghana Revenue Authority’s Artificial Intelligence (AI) Publican System, arguing that the valuation mechanism had led to excessive duty assessments on imported vehicles.
Mr Asamoah called for a review of the system and proposed the introduction of a flat-rate duty structure for vehicles and spare parts to improve predictability and transparency at the ports.
He demanded greater transparency from the Driver and Vehicle Licensing Authority (DVLA) regarding the allocation and distribution of dealer plates and called for an independent forensic audit into the current issuance of DV plates and stricter enforcement of regulations governing their use.
Mr Asamoah further expressed support for ongoing investigations by the Economic and Organised Crime Office (EOCO) into the importation and sale of stolen vehicles in Ghana. While backing the investigations, VADUG urged authorities to distinguish between criminal networks and legitimate dealers who comply with the law.
He emphasised that the Union was not in opposition to foreign investment but opposes what it described as unfair competition and policies that threaten the survival of Ghanaian-owned automobile businesses.
Mr Asamoah called on government, regulatory institutions, and industry stakeholders to engage in dialogue aimed at creating a fair, transparent, and competitive automotive sector that protects jobs, supports local businesses, and promotes economic growth.
He said it remains ready to work with all relevant ministries and agencies to find practical and lasting solutions to challenges facing Ghana’s automobile industry.
BY CLIFF EKUFUL & HILDA NSAMI
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