A sharp divide has emerged within Ghana’s automotive industry as the Automobile Dealers Union of Ghana (ADUG) takes a hardline stance against their counterparts in the spare parts sector.
ADUG is calling on the government to increase tax pressure on members of the Abossey Okai Spare Parts Dealers Association, accusing them of “obstinacy” and a refusal to pass economic gains on to the Ghanaian consumer.
The friction follows ADUG’s recent announcement of a 15% price reduction across its member dealerships, cited as a direct result of the Cedi’s stabilization against the US Dollar and the abolition of the COVID-19 levy.
ADUG leadership argues that if vehicle importers can slash prices to ease the financial burden on citizens, spare parts dealers have no excuse to remain stagnant.
”If we, the Automobile Dealers, are able to slash our car prices, why can’t the Abossey Okai people do the same to support efforts in growing the economy?” questioned Eric Kwaku Boateng, National President of ADUG, in an interview with 1960news.com.
The Abossey Okai Association recently threatened a week-long strike to protest the 20% Value Added Tax (VAT) regime implemented under the Value Added Tax Act, 2025 (Act 1151).
They claim the tax has led to a 15% drop in sales and forced price hikes.
However, Mr. Boateng has dismissed these claims, urging the spare parts dealers to negotiate with the Ghana Revenue Authority (GRA) rather than using the tax as a “yardstick” to keep prices high.
In a provocative move, the ADUG President suggested that the government should not back down on taxation for those refusing to cooperate with the current economic recovery.
He has urged President John Dramani Mahama to consider imposing higher taxes on Abossey Okai dealers if they refuse to markdown their goods.
Mr. Boateng maintains that all traders are currently benefiting from the removal of the COVID levy and a more stable exchange rate environment.
As the Abossey Okai Spare Parts Dealers Association prepares for its potential strike, the public remains caught in the middle.
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