Spare parts dealers at Suame Magazine in Kumasi are expressing frustration over the non-reduction in rates charged as import duties at the ports, even as the cedi gains strength against major foreign currencies.
The importers say they are paying even higher charges now; a situation they claim is severely hurting their businesses.
They are urging authorities to adjust rates charged as duties to reflect the cedi’s improved value, which would allow them to lower spare parts prices for customers.
At a press conference held Tuesday, July 15, the Association’s secretary, Godfred Baffoe-Bonnie stated that “duties remain pegged to forex bureau rates, which previously led to higher payments when the cedi was weak. Now, with the cedi gaining strength, we expected a corresponding reduction in duties, but this has not materialized”.
Baffoe-Bonnie cited an example of the Toyota Voxy, a popular vehicle among importers, which was previously cleared at GH¢35,000 to GH¢40,000 but now costs between GH¢50,000 and GH¢60,000 due to reclassification from “van” to “wagon” by the Ghana Revenue Authority (GRA).
The group reminded the government of President John Mahama’s campaign promise to implement a flat rate duty system at the ports.
“We were eagerly looking forward to this in the President’s last budget, but it turned out otherwise. We plead with the President to consider the flat rate in the mid-year budget,” they pleaded.
The Association also addressed accusations from the government and the public, particularly commercial drivers, who blame spare parts dealers for not reducing prices despite the cedi’s recovery. The dealers argue that without a corresponding drop in port duties, they cannot lower their prices.
“If the government ensures our duties reflect the cedi’s strength, we will pass on the benefits to the public through reduced prices,” Chairman of the Association, Godfred Adu Kofi emphasized.
The Suame Magazine Spare Parts Dealers Association is now calling for urgent intervention to align port duties with the current exchange rate, ensuring fair pricing for consumers and relief for businesses.
As the mid-year budget approaches, the dealers are keenly observing whether the government heeds their plea and fulfills its past promises to the trading community.
