Spare Parts Dealers To Demonstrate Over 2017 Budget

Spare parts dealers in the capital, Accra are set to stage a massive demonstration over the abolishing of tax on the importation of spare parts into the country.

The demonstration would involve second hand parts dealers from Abossey Okai and Kokompe in Accra which are the hub of the spare parts business in the capital Chairman of the Association of Used Auto Parts Dealers (ASUPAD), Sammy Siaw muted this decision on Asempa FM’s Ekosii Sen Programme Thursday whiles reacting to the announcement by the Finance Minister, Ken Ofori-Atta that import duties on spare parts have been abolished.

“Very soon, we would stage a demonstration. Our route will be from Abossey Okai all the way to the Flagstaff House. We would be clad in white to go and say a big thank you to the President for the bold decision…,” he said.

He continued that the spare parts dealers would have staged the same protest if the NPP administration led by Nana Akufo-Addo had not abolished the tax cuts as promised.

“We would have put on red bands and demonstrated against him if he had failed, therefore if he had honored his promises to us and cut abolished the tax, why would we not demonstrate in his support?,” he queried.

According to him, the spare parts dealers would also benefit from the 1% import duty which would also be abolished by the government.

“We have a double dose and benefit from the budget and these are all parts of the litany of items we presented to the government…but he has honoured two and we are happy, we can relax because of this move…,” he added.

He however called on the President to work on the invasion of foreigners into the retail trade in Ghana.

Finance Minister, Ken Ofori-Atta while delivering the 2017 Budget in Parliament announced government’s decision to abolish eight taxes and reduce four others, many of which were set by the previous government.

The taxes the Minister listed to be abolished and reduced include;

(a) Abolish one percent special import levy,

(b) Abolish 17.5 VAT on financial services

(c) Abolish 17.5% VAT on selected imported medicines

(d) Initiate steps to remove import duties on raw materials and machinery

(e) Abolish 17.5 VAT on domestic airline tickets

(f) Abolish 5% VAT on real estates

(g) Abolish excise duty on petroleum

(h) Reduce special petroleum tax rate from 17.5% to 15%

(i) Abolish duties on importation of spare parts.

(j) Abolish levies imposed on Kayayei’s by local authorities

(k) Replace the 17.5 VAT on Ghana Stock Exchange (GSE) traders to a flat rate of 3.5 percent

(l) Reduce National Electrification levy

According to Mr Ofori-Atta, many of the taxes were nuisance taxes, and hence the removal will ease the difficulties imposed on Ghanaians.

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