Akwasi Agyeman being assisted by Seth Okran and other officials of CRAG to cut the tape to open the new office
Operators of car rental firms across the country have called on government to exempt them from the payment of the luxury car tax.
Seth Yeboah Ocran, president of the Car Rentals Association of Ghana (CRAG), who made the appeal to government on Thursday in Accra, said operators were battling with the high cost of business and he payment of a lot taxes which were adversely affecting them.
He was speaking at the launch of GRAG’s website, data collation equipment and ultra-modern office located off Palm Wine Junction at La, near Accra.
“This luxury vehicle tax affects most of our operational vehicles such as 4×4s, pick-ups, buses and executive cars.
“We simply cannot survive as a business if government continues to demand that we pay this luxury vehicle tax. Therefore, we must petition government to waive the luxury vehicle tax for the Car Rental Association of Ghana because we contribute more than our fair share of taxes.”
“Until recently when the luxury vehicle tax levy was introduced, which ranged from GH¢1,000 to GH¢2,500, we just renewed road worthy certificates.
“We are also faced with insurance premium, high cost of finance, bank charges and high maintenance cost due to bad roads. We humbly call on government to exempt CRAG from the luxury vehicle tax levy and review VAT from its current 17.5 percent to 3 percent flat as is being done for car dealers. It’s a basic fact that efficient transportation is critical to all aspects of economic growth yet the transportation system all over Ghana is bad and seems to be getting worse. This has a huge damaging impact on all car rental companies in Ghana and also tourism.”
Mr. Okran also appealed to ministries, department and agencies to consider offering contracts to CRGA to transport individuals and groups, which attend international conferences in Ghana.
“Some car rental companies indicate they have about 60 to 75 cars. Therefore, if they are made to pay this levy, their businesses will simply fold up.”
Akwasi Agyemang, CEO of the Ghana Tourism Authority (GTA), in a remark, assured the car rental companies that his outfit was doing all in its power to present such pertinent issues that affect them to government, particularly the aspect of the luxury vehicle tax, among others.
He also said GTA was aware of bad road networks in the country that connect to tourism locations and that Cabinet was discussing these to have them fixed.
He, however, advised car rental companies to endeavour to register as commercial vehicles to be exempt from the levy.
By Samuel Boadi