Spare parts dealers at Suame Magazine in Kumasi are raising red flags over what they describe as unjustifiably high import duties, despite recent gains made by the Ghanaian cedi against major foreign currencies.
At a press conference held on Tuesday, July 15, the Suame Magazine Spare Parts Dealers Association expressed deep frustration over the continued use of forex bureau rates in calculating duties at Ghana’s ports, arguing that the rates no longer reflect current market realities.
“Duties remain pegged to forex bureau rates, which previously led to higher payments when the cedi was weak. Now, with the cedi gaining strength, we expected a corresponding reduction in duties, but this has not materialized,” said Godfred Baffoe-Bonnie, the Association’s Secretary.
According to the importers, instead of enjoying relief from the cedi’s recent stability, they are now facing even higher duty charges. Baffoe-Bonnie cited the Toyota Voxy—a popular imported vehicle—as a case in point. The vehicle, previously cleared at GH¢35,000 to GH¢40,000, now attracts duties ranging from GH¢50,000 to GH¢60,000, following a reclassification by the Ghana Revenue Authority (GRA) from “van” to “wagon.”
The dealers argue that such changes, coupled with non-adjustment of duty rates in response to currency movements, are crippling their businesses and pushing prices up for consumers.
The Association also reminded government officials of President John Mahama’s campaign pledge to introduce a flat rate duty system at the ports—a promise they say has yet to be fulfilled.
“We were eagerly looking forward to this in the President’s last budget, but it turned out otherwise. We plead with the President to consider the flat rate in the mid-year budget,” the group appealed.
With the mid-year budget review approaching, spare parts dealers are calling on the government to honour its promises and implement policies that reflect current macroeconomic conditions.
The dealers also addressed criticism from commercial drivers and the public, who have accused them of failing to reduce spare parts prices despite the cedi’s rebound.
“If the government ensures our duties reflect the cedi’s strength, we will pass on the benefits to the public through reduced prices,” said Godfred Adu Kofi, Chairman of the Association.
They emphasized that unless port duties are revised downward, price reductions remain impossible, as traders are operating on razor-thin margins in an already volatile economy.
The Suame Magazine Spare Parts Dealers Association is now calling for an urgent policy review to align port duties with the prevailing interbank exchange rate rather than speculative or outdated forex bureau benchmarks.
“Our businesses are at stake, and consumers are suffering,” Baffoe-Bonnie warned. “We need duty relief that mirrors the strength of the cedi.”