Vehicle Dealers’ Union raises concerns over government’s “Publican AI” system and import policies

The Ghana Vehicle and Asset Dealers’ Union (VADUG) has expressed strong opposition to the government’s Publican AI system at the ports, arguing that local vehicle dealers are being pushed out of business due to a combination of foreign competition and what they describe as unfavourable policy conditions.

The union claims that Ghana’s automotive market is becoming increasingly competitive in a way that disadvantages domestic dealers, especially those importing used vehicles from countries such as the United States, Japan, and Europe.

According to VADUG, local importers face a tax burden ranging between 35 and 50 percent in duties and related charges. In contrast, they argue that foreign automobile assemblers, particularly Chinese companies importing semi-knocked down (SKD) and completely knocked down (CKD) kits, benefit from tax exemptions that are not available to Ghanaian dealers.

In a statement issued on Thursday, June 11, 2026, the union said the situation is gradually weakening the local auto trade as foreign brands expand their presence through importation, assembly, and direct sales in Ghana.

“Over the last few years, Ghana has seen a rapid influx of Chinese automobile brands. Companies like Zonda, GWM, Geely, and Jetour are now importing, assembling, and even retailing directly here. We do not oppose foreign investment, but this current trend is unsustainable,” the statement said.

VADUG also warned that inadequate regulation could turn Ghana into a destination for low-quality or obsolete vehicles. The union raised concerns that as China transitions away from petrol and diesel vehicles by 2030, the country could become a destination for older combustion-engine vehicles.

“The risk goes beyond business. China has announced it will phase out petrol and diesel cars by 2030. They are now looking for markets for these combustion-engine vehicles, and Ghana has become one of their targets,” the union alleged.

The group is therefore urging government to establish a fairer tax regime that allows local dealers to compete on equal footing with foreign assemblers. It also called for stronger enforcement of quality and safety standards to prevent substandard vehicles from entering the local market.

VADUG further stressed the need to protect local jobs and businesses, warning that continued imbalance in the sector could negatively affect thousands of Ghanaian families.

However, the union expressed its readiness to engage government in dialogue to find sustainable solutions to the challenges facing the industry.

Publican AI, according to the Ghana Revenue Authority (GRA), is an artificial intelligence-based customs compliance and valuation system designed to detect under-declaration, reduce revenue losses, and ensure fairness at the country’s ports. The system operates within the Integrated Customs Management System (ICUMS) as a support tool for customs officials.