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Business News of Friday, 3 August 2018


Government charging import duties on locally assembled Kantanka cars - CEO laments

The Chief Executive Officer (CEO) of Kantanka Group as well as Kantanka Automobile, Kwadwo Safo Jnr has disclosed in an exclusive interview with Rainbow Radio 87.5Fm that, government takes import duties on Kantanka cars produced in the country.

The CEO told host of Frontline Kwame Tutu that aside the import duties on materials imported, the pay for import duties, a situation he lamented is having a negative on their activities. He was reacting to concerns raised by prospective buyers of Kantanka range of vehicles that there expensive.

In explaining rationale behind their pricing, the businessman and pilot told the host that, government charges import duties on every single brand of vehicles manufactured in Ghana just like other cars imported into the country through our ports. The reduction in taxes and import duties he indicated will reduce the prices for their range of vehicles by an amount of GHc20, 000.

‘’I know customers have raised concerns about our prices. Our saloon car for example is sold at GHc140, 000. If I had my way, I would not have sold the car for GHc140, 000. But we live in a country where you are taxed on everything you import. Aside this, government takes import duties on Kantanka cars as if you have imported the cars from other countries.

They calculate the components in the car and charge you as if you imported it. We are paying GHc20, 000 on each car manufactured in Ghana,’’ he lamented. ‘’This is why we have called for a policy. There is no existing policy that would exempt manufacturers of vehicles in Ghana from import duties.’’

He has also advocated for a policy that will support the industry. Support for local vehicle manufactures he added would create jobs, enhance economic activates through tax incentives among others.

He cited legislations in Nigeria, South Africa, Kenya, Angola and Egypt to back his call for the enactment of the appropriate legislation to help local vehicle manufacturing and assembling companies such as Kantanka Automobile.