Revise Road Traffic Act to include car rental operations

The Car Rentals Association of Ghana (CRAG), an organisation in the hospitality industry, has called on the government to start the regulation of the car rentals space across the country. 

It said presently there was no definitive law that put the spotlight on operators for monitoring and regulating practices of the industry leaving unregistered and unlicensed operators to emerge.

The immediate past president of the association, Seth Yeboah Ocran, who made the call, explained that providing a legal framework to regulate the sector would boost safety and security concerns as well as enhance confidence in the business, particularly at a time that government was keen to boost tourism in the country.

“The Car Rentals Association is appealing to government to carefully look at the Legislative Instrument (L.I) 1293 Section 136 of the Road Traffic Act 2004 (Act 683) where nothing is said about car rentals and its regulation in Ghana,” he said.

He made the call last Thursday at the association’s executive handover ceremony held in Accra. 

New leadership

The new executives are the Chief Executive Officer (CEO) of St Michael Rent-A-Car, Michael Sarpong, as President; CEO of Nii Plants Car Rental, Nii Ayiteu Agyin Armah, as Vice President; the CEO of AAG Transport and Logistics, Daniel Garland, as Organising Secretary; the CEO of Sadak Car Rentals, Samuel Darkwa, as Treasurer; and the CEO of EPA Travel and Tours, Emmanuel Kwasi Asare, as Public Relations Officer. 

Taxes

Mr Ocran, therefore, stressed that a relook at the Act would help address the misplaced identity and give clarity to car rental operations while curbing the constant harassments from officers of AMA and DVLA, because Regulation 1983 (LI 1293 and section 136 of the Road Traffic Act, 2004 (Act 683) did not take into consideration car rental operations.

He also called for a re-examination of the Value Added Tax (Amendment) Act, 2017 (Act 948) which maintained 15 per cent VAT, 2.5 per cent NHIL, 2.5 per cent GET Fund, and one per cent COVID-19 imposition on car rental operators despite exempting other domestic transport operators in the country.

“The Act, in effect, seems to discriminate against the car rental operators, which places the car rental operators at a disadvantage.

The imposition of the tax has adverse effects on car rental enterprises, leading to elevated service pricing compared to competitors in the sub region,” he lamented.

Mr Ocran, who is also the CEO of Yoks Rent-A-Car, however, commended the Ministry of Tourism, Arts, and Culture (MOTAC) and Ghana Tourism Authority (GTA) and other stakeholders for continuously putting in place initiatives that would make the country the top-most tourist destination which would in turn help the car rental industry to grow. 

Vision, training

Mr Sarpong said as part of his vision for the association, he would engage insurance companies to develop specialised insurance packages for members enabling the implementation of a convenient pay-per-trip insurance system.

He added that such collaborations would enhance safety and provide members with tailored insurance solutions that suited their specific needs.

He said he would also come up with initiatives that would facilitate access to the financial market to help members reduce operational costs and facilitate the procurement of vehicles through effective solicitation and arrangements with reputable automobile dealers and manufacturers.

“To amplify our influence, we have devised a comprehensive plan to host significant events, including the Annual Awards Night, CRAG Quarterly Newsletters (Magazines), and the CRAG Auto Show.

These initiatives are strategically designed to boost our visibility, foster customer engagement, and acknowledge outstanding service delivery,” Mr Sarpong added.

A representative of MOTAC, Dr Geofrey Tamakloe, advised the association to train their members in the “language of tourism” because as the industry which connected people to places, they had to be abreast of various tourist attractions and activities in order to boost the experience of all visitors.