Authorities in Mauritania hope a new law will restore vitality to the used vehicle trade while boosting employment and lowering prices.
After the Mauritanian government moved to reduce customs duties and allow the import of used vehicles, second-hand car dealerships in Nouakchott began regaining their former dynamism.
Car dealers and the thousands of people they employ were hit hard by the 2010 Finance Act that banned the import of vehicles more than eight years old. The measure was coupled with an increase in customs duties.
"Since the enforcement of this measure, we have been penalised," said Mohamed Yeslem, who works in the used car sector. "Things are no longer as good as they were, and customers are very rare now because prices have become very high. This law was a boon for dealers who imported brand new cars."
In the face of simmering discontent at dealerships and rising social unrest, the Mauritanian government moved to reconsider the restrictive law. During a March 17th cabinet meeting, authorities approved a plan to amend certain provisions of the act.
The law "is intended to annul the provisions relating to the ban on importing second-hand cars, vans and pick-up trucks of a certain age and to reduce the minimum customs duty payable on these vehicles," Finance Minister Thiam Diombar said.
According to the minister, the new measure will make it possible "to increase the tax base and encourage the operation of intercity transport, besides helping to increase the supply of used vehicles at reasonable prices".
"This will enable me to re-launch my business," one dealer told Magharebia. "The lives of hundreds of families depend on this trade, where everyone can be satisfied."
Drivers were delighted by the news, especially those whose job it is to deliver second-hand cars from the Essentour border crossing to Nouakchott.
"The number of cars coming in is certain to pick up now, and that's good for us. For each vehicle delivered to Nouakchott we can earn up to 100,000 ouguiyas (260 euros)," said Idoumou, one of the drivers.
"I used to earn quite a lot of money before, because there were lots of customers," diesel mechanic Hassan said. "Unfortunately, since this law came into force, there has been less demand for my services and I have been earning less. I hope that with the new initiative, things will get back to how they were before."
At local dealerships, the occasion was marked by spontaneous expressions of delight. Sid' Ahmed, one of the most senior members of the Chems dealership, said: "It's a beneficial decision. Everyone is happy because things will pick up again."
"We've been left to our own devices for several months now. No customers, no money. It was becoming untenable. So the state had to find a solution for these thousands of people whose lives are directly linked to the buying and selling of cars. With the decrease in customs duties from 804,000 to 402,000 ouguiyas, people will now be able to afford cars," Ahmed said.
© Magharebia.com 2011
