Spare parts dealers at Abossey Okai in Accra say the prices of their goods are likely to increase in the coming days following the implementation of new taxes introduced by the government.
According to the traders, the new levies introduced in the 2021 budget have led to an increase in the cost of goods, which will subsequently be passed on to customers.
The Co-Chairman of the Abossey Okai Spare Parts Dealers Association, Clement Boateng, speaking to Citi News on the increased levies, said: “In the 2021 budget that was read, there were a number of taxes that were announced and were to take effect from May 1. As businesses, it will have an impact on us because it affects prices. If taxes are implemented, and they affect businesses, it will definitely be the consumer who will suffer.”
The decision to introduce new taxes has generated huge controversy with many Ghanaians complaining that it will bring untold hardship on them especially as they are yet to recover from the effects of the COVID-19 on their personal economies.
Fuel prices have already risen by some 11% in the last two months and the new taxes could see prices rise further.
The Ghana Revenue Authority (GRA) a few weeks ago indicated that taxes announced in the 2021 budget will take effect from May 1, 2021.
The taxes include the COVID-19 Health Recovery Levy Act, 2021 (Act 1068) which imposes a one percent levy on the supply of goods and services made in the country other than exempt goods or services, the Financial Sector Recovery Levy Act, 2021 (Act 1067) which imposes a five per cent levy on the profit before tax of banks.
Others are the Energy Sector Levy (Amendment) Act, 2021 (Act 1064) which imposes an Energy Sector Recovery Levy of GH¢20 pesewas per litre of petrol/diesel and 18 pesewas per kg on Liquefied Petroleum Gas (LPG) and a Sanitation and Pollution Levy of GH¢10 pesewas per litre of petrol and diesel respectively. – CNR