CADEG appeals for fixed dollar rate to enhance operations
The Chamber of Automobile Dealership Ghana (CADEG) is calling on the government to maintain a fixed dollar rate for at least six months to increase government revenue.
This call was made in a meeting between the executives of the chamber and the newly appointed Sector Commander of the Ghana Revenue Authority (GRA) at the Tema Port.
According to CADEG, the constant review of the dollar rate is having a negative impact on the operations of importers. A fixed rate, they argue, would enhance the operations of importers and ensure regular revenue for the government.
The Executive Secretary of the chamber, Dumenu George, further stated that a fixed rate will reduce the uncertainty in the market, making it easier for importers to plan their operations.
During the meeting, the National Vice Chairman of the Chamber, Kusi Ankomah, who is also the owner of Erata Motors, raised concerns about the recent operation by security agencies on imported stolen vehicles. According to Mr. Ankomah, this operation had affected the sale of vehicles due to mistrust on the part of buyers.
He argued that inspectorate agencies should be required to verify all imported vehicles and their requisite documents and approve them before importers pay import taxes to the government.
The meeting was attended by selected major stakeholders in the industry, including the Ghana Union Traders Association (GUTA), Association of Ghana Industries (AGI), Chamber of Commerce (Burkina Faso), Chamber of Commerce (Mali), Chamber of Commerce (Niger), Trade Advocate Group of Ghana (TAAG) and Cement Distributors Association of Ghana.
During the meeting, the Sector Commander (Customs Division) of the Tema Collection, Assistant Commissioner Christiana Adjei, assured the stakeholders that her outfit is committed to improving efficiency and facilitating trade operations at the port of Tema.
She advised the members of CADEG and other stakeholders to report all complaints to her, and gave the assurance that her office will partner with all trade associations to facilitate trading at the port.
The issue of the constant review of the dollar rate by the government has been a concern for importers for a long time.
The frequent fluctuations in the exchange rate make it difficult for importers to plan their operations, leading to uncertainty and financial losses. In addition, the high cost of borrowing in Ghana has made it difficult for importers to access credit to finance their operations.
The Ghanaian government has taken steps to address the concerns of importers, including the creation of the Ghana Commodity Exchange, which is designed to provide a market for commodities and reduce the risk of price fluctuations.
The government has also announced plans to establish an automotive industry in the country, which would create jobs and reduce the dependence on imported vehicles.
The call by CADEG for a fixed dollar rate is a step in the right direction. A stable exchange rate would provide the much-needed certainty for importers to plan their operations and enable them to access credit to finance their operations.
It is hoped that the government will give serious consideration to this call and take the necessary steps to address the concerns of importers.
