[ 2017-04-04 ]

Spare parts dealers meet gov’t over tax cuts
Dealers of spare parts at Abossey Okai in Accra
have told Citi Business News they are in talks
with government to scrap the import levy on
imported spare parts.

The traders were thrown in a fix when it emerged
that they may not enjoy any tax cuts due to the
rules and regulations regarding the ECOWAS common
external tariff.

There were agitations from importers on Monday,
April 3, 2017 after news broke that the spare
parts dealers may not enjoy tax cuts as promised
by government in the 2017 budget statement at
least not during the tenure of this government.
Finance Minister, Ken Ofori Atta during the budget
statement asserted that the spare parts dealers
will be exempted from taxes at the ports.

But Citi Business News’ checks reveal that the
traders may not have the cuts because Ghana signed
onto the ECOWAS common external tariff policy last
year.

A review of the tariff can only be made after a
minimum of five years.

But the spare parts dealers tell Citi Business
News despite the development, they are confident
government will still go ahead and implement the
tax cuts.
Financial Secretary of the Association, Nana
Kwabena Peprah said they are in talks with
government on the issue.

“We have given out our list that this law will
cover and we are waiting for the government to
respond to it and implement it.”

Nana Peprah further said he spends about Ghc5,000
on import levy alone on goods worth Ghc20,000;
that figure is minus other taxes he has to pay at
the ports before he is able to clear his goods.

Despite government’s delay in clearing some of
his costs at the ports, he explains that the only
reason it is being delayed is because both parties
are looking at how best the move will be of
benefit to the two groups.


“We pay five thousand cedis on import duty alone
then we pay VAT among others, but we will still
push it. We are a sovereign state, these are laws
governing all the blocks so we will force the
government to implement the law and then use it as
a bargaining power,” he said.

An executive member of GUTA, Benjamin Yeboah is
also confident government will soon implement the
tax cuts to the relief of the importers.


“We are quite positive that this decision is not
just a say. The ECOWAS treaty will not affect
government’s decisions. It will inure to the
benefit of everyone, not just those in the spare
parts business because we are all consumers and it
should be our prayer that it works out. I know and
I’m convinced it will work out,”he stressed.


Meanwhile, Citi Business News’ checks also
reveal that some dealers have already reduced the
prices of some of their wares even before the
implementation of the tax cuts.

Source - citibsinessnews.com

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