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Spare parts dealers may not enjoy tax cuts
The first budget proposals of the government presented to Parliament on March 2, 2017, among others sought to abolish import tax on car spare parts.
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Chairman of the second-hand spare parts dealers Association of Ghana, Ampadu Siaw said dealers of second-hand spare parts have not yet reduced prices.
The first budget proposals of the Nana Addo Dankwa Akufo-Addo presented to Parliament on March 2, 2017, among others sought to abolish import tax on car spare parts.
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The traders said the move relieves them of a huge burden that has over the years prevented them from expanding their businesses.
Although parliament has approved the removal of the levy, processes have not been completed by stakeholders to effect the change, hence dealers are unable to reduce prices.
A statement by the Ghana Revenue Authority (GRA) directed officers at the ports and customs to adhere to the implementation of the 1 percent special import levy.
Ampadu Siaw speaking in an interview on Accra FM said "Although the government has removed the import levy and that decision has also been approved by parliament, there is still some ongoing paperwork to ensure that the removal actually takes full effect, and so we are meeting with the Ministry of Finance and other relevant bodies and individuals to finalise everything. It is only after this that we will reduce the prices of spare parts."
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"As we speak, there is nowhere in this country that we have reduced the prices of spare parts because we have not finalised the process," he added.
Meanwhile, a new tax regime came into effect from March 31, 2017, following the amendment of some tax laws.
The bills are the Income Tax Bill, Special Petroleum Tax Bill, Special Import Levy Bill and Customs and Excise (Petroleum Taxes and Petroleum Related Levies) (Repeal) Bill.
The Special Import Levy aims at removing levies payable on specific imported goods, while the Customs and Excise Bill seeks to repeal petroleum taxes and petroleum related levies.
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The Customs and Excise (Petroleum Taxes and Petroleum Related Levies) (Repeal) Bill, 2017, is to repeal custom and excise levies on petroleum products.
READ ALSO: Parliament approves tax cut bills
The new rate is currently being charged on petrol, diesel, liquefied petroleum gas (LPG), natural petroleum gas (NPG) and kerosene imported into the country.
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