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Vehicle users not changing worn out tyres due to high cost

Some dealers in vehicle tyres and vulcanisers have expressed worry about high import duties on new tyres.

Some dealers in vehicle tyres and vulcanisers have expressed worry about high import duties on new tyres.

According to them, the high import duties have made it impossible for them to acquire materials for their work.


‘Rim 14 car tyre’ increased from GHȻ 70 to GHȻ 150
The dealers in the tyre industry indicated that the rim 14 car tyre’ which was sold between GHȻ 60 and GHȻ 70 last year is now going for GHȻ 150 due to exorbitant duties on materials.

Sales reduced drastically
Speaking to our reporter, they said this had made things very difficult for them as sales have reduced drastically over the period.
Ibrahim Abdul Rahman of Bashiru Tyres termed the high taxation of imported tyres as an impediment to growth while noting that some relief in terms of duties could help to increase sales.
He noted that working as an employee, he barely gets GHȻ 10 in a day due to low patronage.
Despite low sales, he said they do not get support from any governmental agency to aid their activities smoothly.
Ibrahim Rahman said that even though there were shortages in the various types of tyres in the country, the motivation to go for more has subsided because of the duty charges on items.
“There is a shortage but due to high-priced duty charges, we fear to even bring tyres. We are pleading that these duties should be reduced so we can have safe vehicles in our environment,” he pleaded.
Low sales
He added that in recent times, they only made sales between the ranges of GHȻ 250 and GH Ȼ300 out of which the cost of the tyre will be taken from and workers will be paid.

Car owners struggling to replace worn out tyres
Rahman also indicated that as a vulcaniser, people come with spoilt tyres but because the prices are high they cannot afford to change them.
He said the cost of materials for the vulcanising job has also increased as the vulcanizing machine sold between GHȻ 1,200 and GHȻ 1,500 last year had increased to GHȻ 6,000.
He noted that sales could be as low as GHȻ 10 per day making it difficult to operate effectively.
“There is no monthly pay in what we do so when will we gather the GHȻ 2 and GHȻ 5 that comes from the pumping of the tyre to take care of our families and feed ourselves.
“Most of our friends have left the job. Before we were about 15 workers and we use to accumulate adequate money for ourselves and our family by the close of the day. But now everyone has left, we are only five remaining. Times are hard,” he lamented

Cost of industrial tyres increased by GHȻ 2,000
The Chairman of the Abossey Okai roundabout tyre dealers association, Emmanuel Danquah, also indicated that industrial tyres that were sold at GHȻ 2,000 last year are now going for GHȻ 4,000 due to import duties.

Tyre for Sprinter buses increase from GHȻ 180 last year to GHȻ 350
He lamented that the Sprinter car tyre which was going for GHȻ 180 last year was now GHȻ 350; making customers complain as though they have increased the prices for their benefit.

Tyre sold for GHȻ 100 last year is now GHȻ 200
“A tyre sold for GHȻ 100 is now GHȻ 200 due to import duty. The business is slow. How can things increase that much within a year?” he questioned.
Mr Danquah called on government to reduce import duties adding that “we don’t see the work they use the tax for. We’ve been paying import duties for over 20 years but we don’t benefit from whatever they use it for”.

Idleness at work
“We sit idle a lot when we come to work these days because there are no jobs. People neither pump tyres nor buy new tyres. Drivers come here with totally spoilt tyres but they don’t have money to purchase new ones, so they wait until the tyre burst.”
This according to Mutalib Hudu, a vulcaniser and tyre dealer, makes vehicle owners buy used tyres instead of brand new ones.
He said on the average the cost of a new tyre is six times the used tyre and for that reason people who cannot afford the new ones buy old ones which also affect them in the long run.
He noted that in the past year, they used to sell between 10 and 12 tyres in a week because people had the money to afford them.
However, he said currently they suffer before selling at most two car tyres in a week.
“Same applies to the pumping of tyres also. Previously, we had many people coming in to check their tyres and pump for safety reasons but now that aspect is also very slow. Charges have also increased making patronage very low,” he said.
He explained that the car tyre that was pumped at GHȻ 1 is now GHȻ 2 and the fixing of new tyres which was done at a cost of GHȻ 5 is now GHȻ 10.
Mutalib Hudu said the GHȻ 150 sales he made per day last year had reduced to GHȻ 50 in recent times.
Another tyre dealer, Issaka Musah, cried out for a reduction in import duties.

Duty on 40-footer container went up from GHȻ 90, 000 to GHȻ 120, 000
He explained that the duty of a 40-footer container of tyres which was GHȻ 90, 000 is now GHȻ 120, 000.
Due to this, he noted that prices of the items become very expensive because they needed to add the cost of import duty to make a profit.
“The tyres are not here and they are not made in Ghana. We import many things so when it gets here we plead that the duty should be reduced so we can also sell at a moderate price,” he said

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Source: citi

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