Abossey Okai Spare Parts dealers have shared their reason for rejecting Bawumia’s Flat rate policy purported to alleviate high duty rates on imported goods into the country.
Incumbent Vice President, Dr. Mahamudu Bawumia, has pledged to introduce a straightforward, citizen, and business-friendly flat tax system upon assuming power.
However, according to the Spare Parts dealers, the proposed flat rate regime would not serve the best interest of importers.
Head of Communications for the Abossey Okai Spare Parts Dealers Association, Takyi Addo, expressed this sentiment during an interview with Morning Show Host Daakyehene Ofosu Agyemang on New York-based Adinkra Radio.
“Vice President Bawumia invited us the leadership to the Jubilee House and we made him aware of our concerns about high duty rate on items we import. We suggested that he should make duty fixed rate. With this one, the rate is constant. When you import items you don’t have any problem with exchange rate, you have no problem with a customs officer, you pay for the items and then you clear them. But Veep Bawumia says he will introduce Flat rate and we don’t want that. With the Flat rate, it is based on percentage.”
“Mahama has promised to introduce fixed rate, if this is implemented one problem traders face at the Port which is demurrage will be solved. Every year, the amount of money we lose to shipping lines through demurrage is about $85million. This is due to negligence of a government. Alan Kyerematen, a trade expert has also promised to introduce fixed rate for us when he’s elected President and that will greatly help us traders. The more importers bring in items, the more money the government makes. A fixed-rate regime is the way to go, that is what importers want.”