CET Implementation Robbing Tax Cuts – Spare Parts Dealers

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Spare Part dealers are unhappy about government’s implementation of the ECOWAS Common External Tariff (CET). The tariff is to harmonies duties on goods and services in the sub-region.

The CET aims to consolidate the regional market, reduces trade deflection due to tariff harmonisation and also stimulates investment in the region.

Ghana postponed the implementation of the CET on several occasions to sensitize the public.

According to Spare Parts Dealers, the move has negated all the gains they were supposed to get after the scrapping of import duty taxes on spare parts.

Last year, many of them jubilated after government announced the tax cuts to offer some relief.

But in a move they have described as robbing ‘Peter to Pay Paul,’ the dealers have vowed to agitate if government does not address their concerns.

An Officer of Ghana Union of Traders Association (GUTA) and Chairman of the Abossey Okai Spare Parts Association, Joseph Paddy told Starr Business’ Osei Owusu Amankwaah that the CET is affecting business.

“It has really affected our operation. Some goods that we were clearing at rate of 10% has moved to 20%. Others that we were clearing at 30% have moved to 35%; because of that it made duties go up.

“Even though customs have reduced the values on certain commodities, it really didn’t help because of the coming in of the CET. So it really didn’t help business. So we are asking government to come again so we see what it can do to help the trade in terms of duties,” he said.

He further indicated that the condition in the sub-region are not unanimous especially, the weight of the currencies to major trading ones like the dollar.

“When they were introducing the CET, we told them that the economic condition of the West African countries is not the same. Look at our currencies; some are enjoying lower once. The condition in Nigeria is different from Ghana. The playing field is not even,” he stated.

StarrFM

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