Business News of Sunday, 30 July 2017
The Chief Executive of Erata Motors, Eddie Kusi Ankoma, has appealed to the government to reduce taxes on new cars to encourage people to buy them more than old ones.
According to him, the current situation where taxes on importation of new cars are higher than old vehicles is not best practice.
He stressed new cars are of high quality and environmentally friendly than old ones, therefore, several countries as part of efforts to discourage the use of old cars place high taxes on them.
“Our parliamentarians know about this for a long time, but they are not doing anything to change it,” Mr. Ankoma told Starr Business’ Osei Owusu Amankwaah.
Mr. Ankoma wants the government to address the situation to encourage the importation and buying of new cars as part of efforts to fight global warming.
He made this known when Erata Motors partnered uniBank to announce a facility to support prospective car 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 a car of their choice.
For used cars, customers are expected to pay 20 percent of the cost and the bank will finance the rest. Persons wanting to acquire new cars would also have to pay 10 percent of the cost. The financing deal is to last for four years.
“As an indigenous bank we have grown over the years and our aim is also to partner local firms and pull them along,” head of Consumer and Asset Finance at uniBank Christian Aaron Otu-Appah said.
uniBank is also going to pay six months premium insurance for clients with no interest.