The Abossey Okai Spare Parts Dealers Association has expressed deep disappointment with the government over the failure to consult its leadership during the preparation of the 2027 Budget Statement and Economic Policy.
According to the association, the Ministry of Finance ignored its key inputs and long-standing grievances ahead of the budget presentation, leaving traders uncertain about how the fiscal policy will address the realities of doing business in the country.
Speaking in an interview on Nyankonton Mu Nsem on Rainbow Radio 87.5FM, the Head of Communications for the association, Takyi Addo, noted that although members were sidelined in the consultation process, they expect the government to refrain from introducing new taxes and instead honour its manifesto pledge to establish the Women’s Development Bank.
“We were not consulted, so we do not know exactly what to say in terms of our expectations. However, one of the key expectations we had was about the Women’s Development Bank,” Mr Addo stated. “The government should also not introduce new taxes. Usually, when new governments take over, in their first two years they scrap taxes, but going into their third year, they introduce new taxes. We pray that no new taxes will be introduced.”
Mr Addo raised serious concerns over the high Value Added Tax (VAT) regime, explaining that the shift from lower flat tax structures—such as the four per cent VAT rate—to higher increments has sharply inflated retail prices. He cited instances where spare parts previously sold at GH¢500 with a GH¢20 VAT component have surged to GH¢600 with GH¢100 in taxes, a situation he said is eroding profit margins and forcing legitimate businesses into the informal sector.
He further indicated that dealers continue to grapple with high import duties, foreign exchange pressures, and rising fuel and transportation costs, all of which steadily drive up the prices of goods on the market.
While acknowledging that the government has made strides in stabilising the cedi, inflation, and lending rates at the macroeconomic level, Mr Addo argued that microeconomic conditions remain harsh for ordinary traders and consumers. He explained that although dealers have been able to import more goods, sales remain sluggish because the purchasing power of Ghanaians has weakened considerably.
“The reality on the ground is that Ghanaians simply do not have the money to buy, and any attempt by government officials to claim otherwise would be most unfortunate,” he remarked.
Beyond taxation and macroeconomic indicators, the association is demanding urgent reforms at the country’s ports to ease the burden on importers. Mr Addo also called on the government to provide clear updates on ongoing road projects and the construction of the proposed 24-hour markets, which have now been redesignated as district markets.
He additionally urged city authorities to decongest the streets by clearing traders operating at bus stops and other unauthorised locations, which he said disrupts orderly commerce.
Mr Addo concluded by complaining bitterly about the growing influx of Chinese nationals into Ghana’s retail space, warning that their direct participation in retail trade poses a severe threat to the survival of local spare parts dealers.
By:Rainbowradioonline.com/Ghana