Auto dealers urge govt to scrap ‘obnoxious’ taxes, review port fees

The Vehicle and Assets Dealers Union of Ghana (VADUG) has urged the government to accelerate the implementation of a comprehensive auto financing policy that enables banks and financial institutions to extend credit facilities to vehicle buyers.

The union also raised concerns over excessive port taxes, criticizing the Ghana Revenue Authority’s Customs Division for imposing what they describe as burdensome charges on vehicle importers and consumers.

“If you’re a customer clearing a vehicle at the port, be prepared to pay over twenty different fees,” VADUG noted, citing a long list of charges such as Import Duty, Import VAT, the GHS Disinfection Fee, COVID-19 Health Recovery Levy, Vehicle Examination Fees, and the African Union Import Levy.

In addition to insurance and freight costs, importers are required to pay taxes based on the first purchase price of the original model year—regardless of the vehicle’s actual purchase year.

Vehicles older than five years attract an extra 50% penalty based on the original value, while brand-new vehicles under six months old are exempt from depreciation-related penalties.

Speaking to the media, VADUG Executive Secretary Frank Atanley Kofigah described the port fees as “obnoxious taxes” that need urgent review.

“Now when you go in there, we have the GHS Disinfection Fee and the Special Import Levy. That 2% levy—what is it even doing there? It was meant for a specific purpose. Is that purpose still relevant? We need to interrogate these charges,” Kofigah said.

He emphasized the need for an accessible vehicle financing framework, citing global examples where consumers can walk into dealerships and secure vehicles with little or no upfront payment—provided they have valid employment and bank statements.

“In other countries, if you’re working, you can walk into a dealership with zero dollars and a proper appointment letter, and still drive out with a financed car. Why not here?” he questioned.

The Importers and Exporters Association of Ghana has backed VADUG’s call for a national vehicle financing scheme. The Association believes such a policy would reduce the country’s reliance on older, high-emission vehicles and promote the purchase of newer, more efficient models.

Executive Secretary of the Association, Samson Asaki Awingobit, said, “Until the government proposes a policy that allows both public and private workers to walk into an auto dealership, pay a 15–30% deposit, and spread the balance over a few years, driving will remain a luxury for many.”