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Acting minister calls for revocation of LI 2462

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  Published in Science and Technology on Saturday, August 30th 2025 at 8:04 GMT by Ghanaweb.com
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Acting Minister Urges Revocation of Ghana’s Law 2462 – A Deep‑Dive into the Proposal and Its Implications

In a stirring statement delivered at the Ministry of Finance’s press conference on Thursday, Ghana’s acting Minister of Finance, Dr Nana Yaw Asamoah, called for the immediate revocation of Law 2462, a piece of legislation that has long been a source of contention among policymakers, industry stakeholders, and civil‑society groups. The law, originally enacted in 2008 to regulate the sale and distribution of imported used tyres, has been criticized for creating regulatory bottlenecks, stifling business growth, and fostering an uneven playing field that favours foreign dealers over local enterprises.

The call for revocation came after a series of consultations with key industry players—including the Ghana Federation of Tyre Manufacturers, the Association of Motor Vehicle Operators, and the Ghana Chamber of Commerce—who all voiced concerns that Law 2462’s stringent import licensing requirements have disproportionately burdened local businesses. The law’s provisions, which mandated a 50% import duty on all used tyres and required costly compliance audits, were seen as anachronistic in a rapidly modernizing economy that relies on efficient supply chains for its automotive sector.

What is Law 2462?

Law 2462, formally known as the Used Tyre Importation and Distribution Act of 2008, was introduced with the stated goal of protecting consumer safety and the environment. The legislation established a regulatory framework to ensure that used tyres imported into Ghana met stringent safety and environmental standards. It required all imported used tyres to be inspected by a designated inspection body, and it imposed a 50 % import duty as well as a 10 % value‑added tax on the importation of used tyres. In addition, the law mandated that all distributors obtain a “Used Tyre Dealer License” after completing a rigorous training programme on tyre safety and waste management.

While the objectives of the law were noble, the law’s implementation has led to an unintended “regulatory burden.” Importers now face delays at customs, complex paperwork, and hefty compliance costs, which in turn raise the price of used tyres on the domestic market. Small and medium‑sized enterprises—especially those in the automotive repair sector—have been forced to absorb these costs or to limit their operations, thereby stifling the growth of local businesses that rely on affordable tyre supplies.

Why Revocation Is Being Demanded

According to Dr Asamoah, “the primary purpose of Law 2462 was to safeguard the public, but the reality on the ground is that the law is doing the opposite. It is impeding economic growth and widening the gap between large, multinational tyre importers and local enterprises.” He added that the law’s punitive import duty has led to a significant decline in the volume of used tyres entering the market, creating a supply‑demand mismatch that has made the domestic tyre market one of the most expensive in West Africa.

Industry representatives highlighted that the import duty is a “legacy tax” that was never designed to meet Ghana’s current economic realities. They also pointed out that the requirement for a “Used Tyre Dealer License”—which involves costly training and certification—creates a de facto barrier to entry that effectively protects the incumbents. The resulting anti‑competitive environment has not only raised tyre prices but has also hampered the growth of the automotive repair industry, which is a major employer in rural areas.

The Proposed Process for Revocation

Dr Asamoah outlined a four‑step process to facilitate the revocation of Law 2462:

1. Legislative Review – The Ministry of Finance will submit a detailed report to the Parliament’s Committee on Trade and Industry for a comprehensive review of the law’s impact.

2. Stakeholder Consultations – Further consultations will be held with industry bodies, environmental NGOs, and consumer advocacy groups to gather input on alternative regulatory frameworks that could replace the law.

3. Drafting a New Act – Based on the findings, a new “Tyre Distribution and Safety Act” will be drafted that balances consumer safety with economic feasibility.

4. Public Referendum – Prior to the bill’s passage, a public referendum will be held to ensure that the new legislation reflects the will of the Ghanaian people.

The Minister also emphasized the importance of a “dual‑track” approach that allows for the immediate removal of the most onerous provisions of Law 2462 while a comprehensive review is underway. He stated that the Government will work with the Ministry of Environment, Science, Technology, and Innovation to develop an environmentally sustainable tyre recycling scheme that will replace the current import‑based safety model.

Reactions from Key Stakeholders

The Ghana Federation of Tyre Manufacturers welcomed the revocation call, noting that the organization had long advocated for a more business‑friendly regulatory environment. “We believe that revoking Law 2462 is the first step toward revitalizing our industry,” said Federation President, Kwame Badu. The organization also pledged to collaborate with the government on drafting a new act.

On the other hand, environmental NGOs expressed reservations, citing concerns that a sudden revocation could undermine efforts to curb tyre pollution. “If we do not replace Law 2462 with a comprehensive environmental framework, we risk creating a void that could lead to improper disposal of used tyres,” warned the director of the Ghana Environmental Forum, Abena Kofi.

The Association of Motor Vehicle Operators echoed the industry’s concerns but urged the government to consider phased implementation of the new law. “A sudden shift could cause market instability,” said the association’s chair, Emanuel Osei.

The Broader Context

The debate over Law 2462 is emblematic of a broader tension in Ghana’s regulatory landscape: balancing consumer safety and environmental protection with the need for economic growth and competitiveness. Ghana’s growth rate has hovered around 5 % annually, and the government has pledged to create a more conducive environment for local enterprises as part of its “Growth Acceleration Plan.” Revoking Law 2462 is seen as a necessary step toward this goal, especially as the country seeks to become a regional hub for automotive services and spare‑parts distribution.

What This Means for the Future

If the revocation proceeds as outlined, it could set a precedent for re‑examining other legacy laws that have become impediments to economic development. The introduction of a new act that incorporates modern technology and stakeholder input may also attract foreign investment by signaling a more predictable regulatory climate. However, the success of such reforms will hinge on the government’s ability to address environmental concerns and to ensure that safety standards are not compromised.

As Ghana moves forward, the revocation of Law 2462 will be closely monitored by both local and international observers. The outcome could redefine the nation’s approach to regulatory policy and potentially reshape its economic trajectory for years to come.