Car rental operators want exemption from luxury car tax

Car Rental Association of Ghana (CRAG), is calling on the Ghana Revenue Authority (GRA) to exempt them from paying the new luxury car tax because their cars are commercial vehicles.

President of CRAG, Seth Yeboah Ocran argued that whereas, their cars are registered as private cars, they use them for purely commercial pursue to drive tourism in Ghana so they have to be exempted.

Government recently announced a new luxury car tax of between GHc1,000 and GHC2,500 for every privately registered luxury car.

Commercial vehicles were exempted, but privately registered luxury cars used for commercial purposes were not.

Seth Yeboah Ocran argued that CRAG members do not use their cars as private cars for their personal benefit but to carry tourists around the country.

He said the magnitude of the tax would compel them to increase their cost of renting their cars and that can collapse their business.

"We provide permanent employment for for over 2,500 Ghanaians and we pay many different taxes so if you add on luxury vehicle tax it will be too much of a burden," he said.

On the issue why they register their cars as private cars, he explains that it adds to the prestige that clients want and helps to boost tourism to the country.

He assured government that CRAG has put together a database of its members to ensure that each of them complied to the regulations and paid their taxes consistently before they quality for the exemption.

"We are committed to working with government to ensure that they system will not be abused," he said.

Touching on the upcoming "Year of Return" next year, Seth Ocran said CRAG is now working with Ghana Tourism Federation (GHATOF) and other stakeholders to train drivers to ensure that they gave the over 400,000 tourists expected an experience of a life time.

He noted that tourists spend more time with drivers than with anyone else so the drivers need to be trained to used that quality time to sell Ghana well.

CEO of Ghana Tourism Authority (GTA), Akwasi Agyemang noted the reason CRAG members are not exempted from the luxury car tax is because they register their cars as private cars and take white number plates instead of the yellow number plates for commercial cars.

He however assured them that GTA is in talks with GRA to consider their GTA accreditation for rental cars as proof of their commercial status so that they can be exempted from the luxury cars tax.

Akwasi Agyemang said the matter has been taken up at both the Parliamentary and carbines level but a decision is yet to be taken in their interest of the tourism sector.

On their the "Year of Return", he said over 400,000 visitors are expected next year, with more 250,000 from their USA alone, since the whole project in hinged on African slaves arrival in Jamestown, Virginia centuries ago.

He believes it is an opportunity for all players in the tourism industry, including hotels, restaurants, car rentals, event organizer and many more to position themselves strategically and benefit from it.