Business News of Friday, 3 March 2017
Consumers of spare parts should expect reduction in prices of goods within the coming months. The reduction has been necessitated by the abolishing of the levy on imported spare parts.
Presenting the first budget by the NPP government in Parliament on Thursday, Finance Minister, Ken Ofori-Atta announced that importers will no more be paying the 1 percent Special Levy on imported goods. The move has since been met with much excitement from the spare parts dealers operating in the spare parts hub in Abossey Okai in Accra.
The Chairman of the Spare parts dealers Association, Joseph Paddy told Citi Business News the taxes accounted for about fifty percent of their cost of products. A development he explains has adversely affected their profit margins. He however added that the development should translate into growth and employment creation. “We will invest the ‘surpluses’ in our businesses, expand and employ more people,” he said.
Another retailer, who spoke to Citi Business News said, “If the taxes are reduced, purchases will definitely increase since we will reduce our prices… Currently, some drivers are hesitant to even service their cars due to the high cost as a result of the high taxes.”