The Vehicle and Asset Dealers Association of Ghana (VADAG) says a comprehensive support system is needed to ensure that local players in the automobile value chain do not lose out from the implementation of the recently launched Ghana Automotive Development Policy.
The policy which seeks to help with the establishment of a competitive automotive industry in Ghana provides for a number of tax incentives and exemptions for interested local and foreign car assembling companies.
But commenting on the impact of the policy on the operations of stakeholders like the Vehicle and Asset Dealers Association of Ghana, the Secretary of the association Clifford Ansu says even though they support the policy, some measures need to be put in place to protect the interest of local players who are not into assembling of cars.
“What I want government to do is to try and enhance our chances of thriving in the industry with the coming into force of the new policy. For example loans and facilities captured in the policy should be easily accessible. This is because the foreigners normally get better rates for credit when compared to us the locals.”
Tax exemptions
To incentivize the pioneers in the infant automotive industry to invest long-term in the industry and contribute to developing other industries and services essential to the consolidation and growth of the auto industry, the Minister said some exemptions will be given along with other programs. Some of them include the following;
5 Years Corporate Tax Holiday – Enhanced Semi-Knocked-Down (SKD)
10 Years Corporate Tax Holiday Completely-Knocked-Down (CKD)
Exemption of import duties and related charges on any plant, machinery, equipment or parts of the plant, machinery or equipment (that are not already zero-rated) imported for SKD and CKD Auto Assembly
Waiver of the import duty and domestic levies on imported SKD and CKD kits and on Original Equipment components, including:
Import VAT
National Health Insurance Levy
GET Fund
EXIM Levy
Special Import Levy
CBN
