Business & Finance

Spare Parts Dealers Association Endorses Bawumia’s Proposed Flat Tax

The Abossey Okai Spare Parts Dealers Association has endorsed Vice President Dr Mahamadu Bawumia’s proposed flat-rate tax regime in the country when elected in the upcoming election.

The Association characterized the proposed measure as “visionary” and “commendable”, asserting it would safeguard the interests of spare parts dealers nationwide.

In a press statement, it said, “As an apolitical organization dedicated to the development and enhancement of the spare parts dealership industry, we wholeheartedly accept and support Dr. Bawumia’s proposal.

“We eagerly anticipate the timely implementation of this policy, contingent upon the New Patriotic Party’s success in breaking the eight-year political jinx come December 7, 2024.”

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With this tax regime in place, the group anticipates a significant reduction in the cost of spare parts which it believes, in the long run, will reflect on transport fares.

“By uniting in support of this initiative, we can collectively contribute to the growth and prosperity of the spare parts dealership industry while fostering positive developments in the broader economic landscape.

“The Association expresses its gratitude to Dr Mahamadu Bawumia for his foresight and commitment to the welfare of the spare parts sector, and we look forward to witnessing the positive impact of this policy on our industry and the nation as a whole.”

They are not the only stakeholders who appear to have been pleased with the proposal. The Ghana Union of Traders’ Associations (GUTA) and the Association of Ghana Industries (AGI) have all welcomed it.

During his address at the University of Professional Studies, Accra (UPSA), last week, Dr Bawumia posited that the current tax regime, which has existed since independence, has failed the country.

He said he plans to introduce digitalized flat tax regimes with appropriate exemption thresholds set to protect the poor.

He also proposed incentivizing the private sector to complement the government in the provision of infrastructure and other services to reduce government expenditure and improve maintenance. This is a way he plans to lessen the fiscal burden on the government by leveraging the private sector.

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