Public Relations Officer of the Abossey Okai Spare Parts Dealers Association, Kwadwo Takyi Addo, has accused the Ghana Revenue Authority (GRA) of being “lazy” and unfairly shifting the burden of revenue mobilisation onto them.
Speaking in an interview on Adom FM’s morning show Dwaso Nsem, Mr Takyi Addo said although President John Dramani Mahama is performing, the decision to significantly increase the Value Added Tax (VAT) on spare parts is hurting traders and cannot be justified.
“The President is performing, but the percentage increase they are bringing is not helping us. For GRA to increase the VAT to this level is simply not fair,” he said.
His comments follow the implementation of the new VAT regime under the Value Added Tax Act, 2025 (Act 1151), which has raised VAT on spare parts from 4 per cent to 20 per cent for VAT-registered businesses.
Mr Takyi Addo expressed frustration that efforts to engage government officials and politicians on the matter have yielded no results, forcing the association to resort to speak publicly.
“Even if we try to call government officials or politicians to draw their attention to our concerns, we can’t even get them to listen. That is very worrying. That is why we are speaking on radio, so that the President will hear us,” he explained.
He argued that the GRA already stands to make significant revenue from Abossey Okai without imposing such a high VAT rate.
“Let’s assume Abossey Okai has about 20,000 shops. If GRA registers all of them under its laws and each shop pays just GH¢500 a year, you can imagine the amount of money they will raise annually from Abossey Okai alone,” he said.
Mr Takyi Addo accused the GRA of failing to properly enforce tax compliance nationwide, insisting that many registered taxpayers do not pay taxes, yet little is done to address the issue.
“Ghanaians who are registered with GRA are many, but only a few actually pay their taxes. What is GRA doing about that? They are too lazy. They’ve been given targets, so they are forcing us to help them meet those targets,” he alleged.
He further questioned what happens to excess revenue when GRA exceeds its targets.
“When they even get surplus after meeting their targets, what do they do with the surplus? They should come and tell us,” he demanded.
Under the previous tax arrangement, spare parts dealers paid 4 per cent VAT, which helped keep prices relatively stable. However, under the new regime, an item that previously sold for GH¢500 with GH¢20 VAT now attracts GH¢100 in tax, pushing the final price to GH¢600.
The Association also raised concerns about what it described as unequal treatment of businesses. While companies with annual turnover above GH¢750,000 are required to register for VAT and charge 20 per cent, smaller operators can sell the same items at lower prices despite sourcing from the same importers.
“This system penalises growth, efficiency and compliance, while unintentionally rewarding informality,” Mr Takyi Addo said.
The Abossey Okai Spare Parts Dealers Association has warned that it may embark on a one-week strike if the government fails to urgently review the new VAT policy.
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