Numerous traders in and around Kumasi remain stranded as a strike action by shop owners at Adum, the busiest business district in the regional capital, entered the second day.
The shop owners, mostly dealers in fast moving consumer goods, have closed their shops in protest of what they call “complicated taxes” and the rate at which the Ghana cedi is depreciating against the US dollar, the main currency they use to import goods.
When journalists visited the area Tuesday morning, a long stretch of the shops at the Pampaso and PZ areas were under lock and key, while some traders, who had travelled from other regions to Kumasi to shop, were disappointed.
Many head potters (Kayayei) who also depend on the flourishing business activities in Adum for their daily bread, were seen sleeping in front of the shops, as there was no work to do.
The strike has brought business to a halt with the impact being felt by adjoining regions and neighbouring countries who consider Kumasi as the major commercial city.
Mr Kwadwo Appiah, an Executive Member of the Adum Traders Association, speaking to the media, denied that the closure of the shops was to avoid the Ghana Revenue Authority’s directive to position tax officials at individual shops to check the issuance of appropriate VAT invoices to consumers.
He said the current tax system was complicated and shop owners were using their profit margins to pay for the VAT, since the 18.5 percent being charged by the GRA had resulted in price increment for goods, which scared away many customers.
Mr Appiah said it was important the government discussed with traders to identify their challenges and together find appropriate measures to simplify the tax system for convenience.
He said the continued depreciation of the cedis against the dollar was having a toll on traders and consumers since goods and services were becoming more expensive.
“This is collapsing more businesses and there is the need for the government to come out quickly to address the challenges before things get out of hand,” he said.
The strike would continue in all the business districts in Kumasi until the government and the GRA found it appropriate to listen to their concerns, Mr Appiah said.
