Business News of 2014-02-13

We won’t pay 3% VAT - Spare part dealers

The Association of used auto parts dealers at Abbossey Okai has given government a one-month ultimatum to reverse new forex rules announced by the bank of Ghana.

The 20,000 member association is threatening to halt the charging of three percent value added tax-(VAT) on their products if government refuses to address their concerns.

This follows a general meeting organized by the leadership of the association on Wednesday February 11.

Abbossey Okai; the heart of the spare parts business in Accra, was relatively quiet as hundreds of spare parts dealers abandoned their businesses and rather assembled to discuss on the way forward on the new and revised rules.

The cedi since the beginning of the year has depreciated significantly against the dollar and all other major foreign currencies.

The development led to the Bank of Ghana announcing the new and revised forex rules to deal with the matter.

According to spare parts dealers, the new directives on forex operations in the country will only cripple their businesses.

As part of a road map to protest against the move, thousands of spare parts dealers as well as shop owners at Abbossey Okai are expected to display red bands at their premises.

As part of the resolution, if government refuses to address their concerns, the next phase of the road map will be activated by closing down all shops in Abbossey Okai.

According to the chairman of the association, Okai, Siaw Ampadu, the dealers will stop charging VAT after one month if government refuses to address their concerns.

“There will be other meetings in Kumasi and Takoradi because it will take a national dimension very soon,” Mr. Ampadu said.

According to them, the failure of government to monitor and control the operation of foreign retailers is partly to blame for the pressure on the dollar and other major currencies leading to the challenges being witnessed now.