The Private Enterprise Federation (PEF) says businesses will indeed respond to the recent tax cuts by reducing prices of goods and services.

President of the Federation Nana Osei Bonsu tells JOYBUSINESS businesses need some little time before responding to these tax cuts. 

President Akufo-Addo last week gave his assent to a set of taxes that were abolished in the 2017 budget.

Some Oil Marketing Companies (OMCs) have already reduced the price of petroleum products, however other firms that have benefited these tax reviews are yet to respond.

The Ghana Revenue Authority (GRA) on Monday revealed it is waiting for the necessary regulations and bills before it starts implementing cuts in import taxes at the ports.

But Nana Bonsu said businesses were ahead of the game as some had already reduced their prices in Agbogboloshie and Abossey Okai in line with their expectation of goodwill from government.  

Related: NPP victory: Abossey Okai traders cut prices of spare parts by 30%

Some traders at the Abossey Okai spare-parts market in Accra reduced the prices of their products in the wake of the New Patriotic Party’s (NPP) electoral victory last December.

The traders were upbeat about business prospects in 2017, saying the economic policies tabled by the President-elect would boost their business.

This is not the first time the traders at Abossey Okai have done this. In 2001, when the NPP administration won power, the traders did same in solidarity with the Kufuor-led administration.  

Related: Abossey Okai spare parts dealers jubilate over abolishing of duties

Hundreds of spare parts dealers at the Abossey Okai enclave took to the streets to jubilate over government's move to scrap duties on imported spare parts.

The sellers lauded government for the decision which they say will ease the difficulties they face in importing their items into the country.

"I am happy [President] Nana Addo Dankwa Akufo-Addo has listened to our prayers. We thank him very much," one of the dealers told Joy News after the budget presentation earlier this month.

Finance Minister Ken Ofori-Atta announced the scrapping of about eight taxes and re-adjustment of four taxes in 2017 by government, a decision that is expected to improve the climate of doing business in the country.

In line with this, Nana Bonsu said, "Now that taxes have been reduced it is not like going back to reduce some more. It is now leveling the playing field for businesses to recoup what they earlier reduced. 

"Of course consumers are always looking for 100 percent of everything, not the gradual reduction but it is going to happen for all of us," he said.

According to him, once the cost of doing business goes down, it would reflect in the prices of goods and services so consumers should keep their fingers crossed.