The Abossey Okai Spare Parts Dealers Association has appealed to the government to reduce the 20 per cent Value Added Tax (VAT) imposed on spare parts to about five to eight per cent.
According to the Association, the new tax regime--which has been increased from four per cent to 20 per cent--could collapse the businesses of its members and significantly increase the cost of spare parts to consumers.
The Communications Officer of the Association, Mr Takyie Addo, said in a press statement issued in Accra yesterday that the Association would embark on a one-week strike if the current VAT hike was not reduced.
He lamented that the 20 per cent VAT would severely affect the operations of spare parts dealers.
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Mr Addo explained that the tax increase would lead to sharp price hikes, making spare parts unaffordable for many consumers and adversely affecting the transport sector.
He added that a spare part that was sold for GH¢520 under the four per cent VAT regime would now sell for GH¢600 under the current tax structure.
The Association expressed concern about the practical impact of the newly implemented VAT regime under the Value Added Tax Act, 2025 (Act 1151), particularly regarding fairness, competitiveness, and voluntary compliance within the spare parts sector.
Mr Addo proposed a reduced VAT rate of between five and eight per cent for spare parts dealers or the introduction of a simplified, sector-specific VAT scheme at a flat rate of about three per cent to ensure fairness, competitiveness, and sustainability in the sector.
By Kingsley Asare
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