Business News of Sunday, 8 February 2026Source: www.ghanaweb.comThe Abossey Okai Spare Parts Dealers Association has raised concerns over the newly implemented Value Added Tax (VAT) regime under the Value Added Tax Act, 2025 (Act 1151), warning that the policy is distorting competition within the spare parts trade and could trigger a one-week strike if not urgently reviewed. Under the current regime, the same item attracts GH¢100 in VAT, pushing the price to GH¢600.”Abossey Okai spare parts dealers demand VAT review“This represents an additional GH¢80 burden on consumers for the same product,” the Association noted. A key concern highlighted is the unequal impact of the VAT system on dealers who source spare parts locally rather than importing directly. While reaffirming its support for government’s efforts to broaden the tax base and strengthen domestic revenue mobilization, the Association described the 20 percent effective VAT rate as excessively high for the spare parts trade. It proposed either a reduced VAT rate of between five and eight percent for spare parts dealers, or the introduction of a sector-specific simplified VAT scheme at a flat rate of about three percent, applied uniformly regardless of whether goods are imported directly or sourced locally.

Source: GhanaWeb February 08, 2026 21:29 UTC