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Business News of Friday, 24 August 2012

Source: Daily Guide

Second Hand Dealers Call for Tax Reduction

Some second-hand dealers at Kantamanto in the Greater Accra region have called on government to reduce high taxes in the country.

The traders claimed that the taxes had rendered most of them jobless since they could no longer purchase the imported clothing.

Ama Serwaa, a second-hand clothing dealer at Kantamanto, in an interview with CITY & BUSINESS GUIDE, explained that the situation had worsened.

According to her, the imposition of the high taxes had created a number of problems in their homes.

“Second-hand dealers, who were known as ‘cash ladies and gentlemen’ are now facing hardship. Many of us now cannot even cater for our families likewise lead the life that we used to,” she lamented.

She alleged that the exorbitant prices of second-hand shirts, dresses, skirts, shoes, bed sheets and spreads bales, among other goods, were collapsing businesses.

“All my three children are now in the house. They have been in the house for the past four months since my husband lost his job as a result of the situation,” she added.

She explained that bales of cotton blouse and skirts, which were sold between GH¢250 and GH¢350 previously, were now going for between GH¢800 and GH¢ 1,300.

She observed that ladies polo t-shirts, which used to sell at GH¢230 were now selling at GH¢350.

Mabel Akua Eshun, another second-hand clothing dealer, also indicated that there are two types of light weights.

Light weight B, according to her, used to sell at GH¢350 was now selling at GH¢700 while light weight A which was sold between GH¢550 and GH¢600, was now selling at GH¢1,200 and GH¢1,300.

Mrs Eshun also noted that office skirts which used to sell at GH¢60 some few years back was now selling at GH¢290.

She added that bales of dresses, which also used to sell at GH¢700, was now going for GH¢1,300, GH¢1, 400 and GH¢1,500 respectively.

Loans, she noted, that were secured from the banks had accumulated, adding, “Bankers used to chase us to come for loans at their various places but have now stop pursuing us because they know the business is a bit down now,” she said.

“Those who acquired loans early on are now in hot waters since the interest rate keep growing.

“Most of the dealers trade in dollars so the moment there is increment it affects everything that is being imported into the country,” she added.

She therefore pleaded with the government to work tirelessly to address the depreciation of the cedi against major currencies in order to assuage their suffering.