‘Waive taxes on brand new vehicles’
The government has been called upon to waive taxes on brand new vehicles to encourage consumers in the country to purchase them more than used ones.
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The Chief Executive Officer (CEO) of the Erata Motors, Mr Eddie Kusi Ankoma, who made the call, said the current situation where taxes on importation of new vehicles were higher than used ones was not best practice.
In 2015, for example, sales of brand new vehicles went up by 31.3 per cent to 8,201 units, according to data from the Ghana Automobile Dealers Association (GADA).
Although the figure is an improvement over previous year’s numbers, which were 6,248 units, it is still below the 13,123 units sold in 2012.
After peaking in 2012, brand new vehicle sales have been dropping, mainly as a result of dampened consumer sentiments, declining economic fortunes and the growing influence of ‘grey importers’ in the vehicle retail business.
Mr Ankoma underscored the need for the government to reduce taxes on new vehicles to encourage people to buy more.
“Our parliamentarians know about this for a long time, but they are not doing anything to change it,” Mr Ankom said.
He observed that the government must, as a matter of urgency, resolve the situation to encourage the importation and buying of brand new vehicles as part of efforts to fight global warming.
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Partnership
He made this known when Erata Motors partnered uniBank to announce a facility to support prospective vehicle buyers to enjoy financial support from the indigenous bank.
The bank is willing to support salary workers who are paid above GH¢2000 to acquire vehicles of their choice.
For used cars, customers are expected to pay 20 per cent of the cost and the bank will finance the rest.
People who want to acquire new cars will also have to pay 10 per cent of the cost. The financing deal is to last for four years. — GB