The 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 sector may embark on a one-week strike if urgent reviews are not undertaken.
In a press statement on February 8, 2026, signed by the Head of Communications, Takyi Addo, the Association said the new 20 percent VAT rate is significantly affecting pricing, competitiveness, and compliance among spare parts dealers.
According to the group, under the previous arrangement, spare parts were subject to only 4% VAT, allowing dealers to maintain competitive prices. The Association highlighted that an item previously sold for GH¢500 with GH¢20 VAT now attracts GH¢100 in tax, pushing the total cost to GH¢600 — an additional GH¢80 burden on consumers for the same product.
The group also raised concerns about the unequal treatment of dealers depending on their VAT registration status. Dealers with annual turnover above GH¢750,000 are required to register for VAT and charge 20% at the point of sale, while those below the threshold can sell at lower prices despite sourcing from the same importer.
“This imbalance penalizes growth, efficiency, and compliance, while unintentionally rewarding fragmentation and informality.” Dealers unable to claim input VAT on locally sourced products are forced to sell at higher prices, putting them at a competitive disadvantage.
While supporting the government’s efforts to broaden the tax base and improve revenue mobilization, the Association proposed either a reduced VAT rate of 5–8 percent for spare parts or a simplified sector-specific VAT scheme at a flat rate of 3 percent, applied uniformly regardless of whether goods are imported or sourced locally.
The group argued that such measures would restore price competitiveness, encourage voluntary compliance, protect formal businesses, and ultimately increase net revenue by reducing tax leakage through informality.
The Association concluded by urging the government to review the VAT rate and structure for the spare parts sector, emphasizing that larger, compliant businesses should not be disadvantaged.
“We respectfully request a review of the VAT rate and structure as applied to the spare parts sector and remain open to further engagement on this matter,” the statement said.
In a related development, the Deputy Minister for Education, Dr. Clement Apaak, has appealed to striking university unions to call off their industrial action to protect teaching and learning across public universities.
Dr. Apaak made the appeal after chairing a meeting at the Ministry of Education on behalf of the Minister for Education, Haruna Iddrisu, with the Senior Staff Association of Universities of Ghana (SSA-UoG).
The meeting held on Friday, February 6, brought together representatives of the Teachers and Educational Workers’ Union (TEWU-TUC), the Federation of University Senior Staff Associations of Ghana (FUSSAG), the Ghana Tertiary Education Commission (GTEC), and the Fair Wages and Salaries Commission (FWSC), led by its Chief Executive, Dr. George Smith-Graham.
In a Facebook post after the engagement, Dr. Apaak said the discussions were frank and constructive, focusing on the issues that triggered the ongoing strike by senior university staff.
“On behalf of President John Dramani Mahama and the Minister for Education, Haruna Iddrisu, I appealed to the unions to consider the impact of their action on teaching and learning and call off the strike,” he stated.
He further encouraged the unions to remain engaged with statutory dispute-resolution mechanisms.
“I urged them to also continue with their engagements with the National Labour Commission to reach an amicable resolution,” Dr. Apaak added.
Members of the SSA-UoG on Tuesday declared a nationwide strike to protest recent changes to their conditions of service by the Fair Wages and Salaries Commission.
The association argues that the adjustments were imposed without adequate consultation and are detrimental to the welfare of senior staff in public universities.
According to the SSA-UoG, the variations affect key aspects of their service conditions and undermine previously agreed arrangements, leaving members with little option but to embark on industrial action.
The Fair Wages and Salaries Commission, a state institution mandated to regulate salaries, wages, and working conditions for public sector workers, is responsible for setting pay policies, allowances, and benefits across government-funded institutions, including universities.
The ongoing strike is already affecting academic and administrative work, with lectures, examinations, and routine university operations disrupted at several institutions.
Dr. Apaak said the government remains committed to dialogue and consensus-building, stressing that sustained engagement among all parties is essential to restoring calm on campuses and ensuring that students are not unduly affected by the dispute.
