Kumasi Spare Parts Dealers Give Gov’t Two-Week Ultimatum Over Rising Port Duties

Kumasi Spare Parts Dealers Give Gov’t Two-Week Ultimatum Over Rising Port Duties

The Kumasi Spare Parts Dealers Association has issued a strong appeal to the Government of Ghana, expressing deep concern over escalating import duties at the country’s ports and the 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 then-presidential candidate John Dramani Mahama at AH Hotel in East Legon. During that 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 says that since assuming office, the government has not taken any visible steps to fulfill that commitment. They note that two national budgets have already been presented without any mention of the proposed policy, leaving many traders uncertain about the future of their businesses.

Instead, traders say a new system, known as the Publican AI platform, has been rolled out at the ports. While acknowledging the importance of technological advancement and modernization, the Association argues that the implementation has had unintended consequences, particularly a sharp increase in import duties.

According to them, duties have risen between two to three times compared to previous rates, placing significant financial strain on importers.

Chairman of the Suame Spare Parts Dealers Association, Kofi Adu Godfred, speaking in a media interview, emphasized that members are not opposed to paying taxes or embracing innovation. He stressed, however, that the current duty regime is 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.

The Association has 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 percent in order 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.