Ghana: local carmaker Kantanka gets 10-year tax exemption

Google+ Pinterest LinkedIn Tumblr +

Kantanka Automobile Company, Ghana’s only local carmaker, has been offered a 10-year tax holiday, as part of the government’s long-term vision of making Ghana an automobile hub of West Africa.

Additionally, Kantanka has also been given a duty free deal to import materials for assembling and manufacturing purposes.

This was announced by the carmaker’s CEO, Nana Kwadwo Safo Ankofena Junior in Accra.

The reduction in taxes and import duties he indicated will reduce the prices for their range of vehicles by an amount of GHc20, 000.

“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 lamented.

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

The Chief Executive officer (CEO) in August 2018 disclosed in an interview with Rainbow Radio 87.5Fm, an Accra-based radio station, that government charges import duties on Kantanka, which he said made the cars uncompetitive.

“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 grieved last year.

Share.

About Author

Leave A Reply