Ghana 2017 Budget Statement

Removal of some taxes that included import duties on auto parts though a welcoming news to the importers and auto parts dealers, this might not translate to lower prices for consumers. The consequence of this tax removal will be an increased in auto parts importation or possibly dumping of cheap parts with a rather glaring negative impact on local parts fabrication and manufacture, not to talk of an increase smuggling of these parts to neighboring countries and the negative environmental impact of these dumped material on us. Also, an increased import bill in this direction without taxation will not only lead to loss of needed revenue but will widen our export-import gap further which has a negative implication to the already wobbling and fast depreciating cedi (year to date depreciation of 5.4%). Therefore, any economic gains in this direction is likely to be wiped away by the cedi depreciation. .............