Business News of Monday, 16 July 2018
Source: 3news.com
2018-07-16
An executive member of the Association says the sector is over-burdened with taxes
Players in the transport sector are making a strong case for government to create an enabling environment for their businesses to thrive.
According to an executive member of the Car Rentals Association, Kalu O. Kalu, the sector is over-burdened with taxes that should be reduced.
The Ghana Investment Promotion Centre (GIPC) estimates that road transport accounts for 96 per cent of passenger and freight traffic and about 97 per cent of passenger miles in Ghana.
Patrons of car rental services say though they are provided luxury and convenience, some of the services come at high cost.
The executive member of the Car Rentals Association attributes this to the high taxes in the sector.
Kalu O. Kalu wants government to reduce the taxes to cushion their business.
“There are a lot of taxes that we are paying now. Corporate tax, withholding tax and even our capital adequacy ratio are all over-burdening us.
“We plead with the Transport Ministry and the Finance Ministry to reduce some of these taxes, so we can also reduce our cost of production,” Mr. Kalu said.
Speaking at the unveiling of the Switch Car Rental Service in Accra, Mr Kalu stated that the transport sector has a lot to contribute to the country’s GDP if given the necessary push.
He noted that Switch Car Rental Services is poised to deliver excellence and maximum security for customer.
“We want to partner the NRSC to also reduce the frequency of accidents on our roads and safeguard Ghana’s human resource,” he added
Switch Car Rental Services is a subsidiary of the Leaseafric Group.