Kumasi Spare Parts Dealers Urge Government to Halt Rising Import Duties

Spare parts dealers in Kumasi, the Ashanti regional capital, have expressed deep concern over what they say are escalating import duties at the country’s ports, as well as the government’s failure to implement a previously promised flat-rate duty system.

According to the Association, prior to the 2024 general elections, a meeting was held between members of the Ghana Union of Traders’ Associations and the then-presidential candidate of the National Democratic Congress (NDC), John Mahama.

During the engagement, a firm assurance was reportedly given that a flat-rate duty system would be introduced to ease the financial burden on traders and promote business growth.

However, the Association said since assuming office, the government had not taken visible steps to fulfil that commitment.

They noted that two national budgets had already been presented without any mention of the proposed policy, leaving many traders uncertain about the future of their businesses.

Instead, the traders said a new system, known as the Publican AI platform, had been rolled out at the ports.

While acknowledging the importance of technological advancement and modernisation, the dealers argued that its implementation had led to unintended consequences, particularly a sharp increase in import duties.

According to them, duties had risen between twice or thrice compared to previous rates, placing significant financial strain on importers.

Chairman of the Suame Spare Parts Dealers Association, Kofi Adu, speaking in a media interview in Kumasi, stated that members were not opposed to paying taxes or embracing innovation.

He stressed, however, that the current duty regime was excessive and unsustainable for many businesses within the sector.

“In view of this situation, we are respectfully calling on the government to urgently revisit the issue with fairness and consideration,” he stated.

Members of the Association have consequently given the government a two-week ultimatum to address their concerns and provide a clear policy direction.

They warned that failure to act within the stipulated period would compel dealers to increase the prices of spare parts by between 50 and 70 per cent to stay in business.

Such a move, they cautioned, would have a ripple effect on the general public, particularly vehicle owners and transport operators, who rely heavily on spare parts for maintenance and operations.

Despite the growing tension, members reiterated their willingness to engage government authorities in constructive dialogue, expressing hope that swift action would be taken to honour earlier commitments and support the trading community.