Business News of Tuesday, 11 July 2017
Buyers of automobile parts will enjoy relief on vehicle spare parts following the abolishment of the import duties on spare parts.
The tax policy goes into effect this week after Parliament finally removed import duties on automobile spare parts to help reduce prices of vehicle spare parts in the country.
This follows the successful passage of the Customs Amendment Bill 2017 which allowed for the removal of import duty on all vehicular spare parts.
The minority in parliament received the bill which was earlier passed weeks ago with apprehension arguing that the impact of the said bill is far fetched and hence its passage will not improve the lots of spare parts dealers.
Deputy Minority Leader, James Avedzi had argued that the bill was unlikely to yield the required results, since in his view, no mechanism has been put in place to ensure a corresponding reduction in prices of spare parts to reflect the removal of import duties.
But the Vice President, Dr. Mahamudu Bawumia interacting with traditional leaders on the sidelines of a sensitization program said the removal of import duty taxes will in the longrun boost the businesses of importers in the automobile industry.
He said this was part of an initiative to improve the ease of doing business for importers in the automobile industry.
“My friends at Abossey Okai finally your taxes on spare parts have been removed by law and now it is going to be in operation this week going forward. It s very very good because then you can have people bring in various parts for industry and they will do so without duty.”