Story by: Paul Mensah Nsor
Accra, Ghana - The Ghana Union of Traders Associations (GUTA) has expressed deep concern over the new VAT regime under Act 1151, citing significant challenges to the trading community and potential negative impacts on business operations and consumers.
In a statement, GUTA President highlighted the organization's efforts to engage with the Ghana Revenue Authority (GRA) and the government, including submitting input on the abolition of the flat rate and participating in meetings to address implementation challenges.
However, GUTA expressed disappointment that GRA has formed a task force to harass and coerce traders, undermining agreements reached during discussions. The organization emphasized that VAT is a complex tax regime that burdens traders with calculations, paperwork, and cascading price effects.
GUTA proposes the following solutions:
- Review Act 1151 urgently, introducing a simplified 3-4% VAT status quo for the informal sector
- Intensify trader registration and education to broaden the tax net and increase revenue
- Make the new regime optional for traders comfortable with e-services
- Introduce incentives for shops and retail outlets to demand VAT receipts and increase revenue
The organization urges members to remain steadfast and demands that GRA halts harassment and engages in meaningful dialogue to address challenges. GUTA also calls on the government to intervene and ensure GRA works collaboratively with traders to achieve a fair and effective tax system.
The statement emphasizes that policymakers responsible for the law must be part of the solution, finding a fair and effective tax system that supports Ghana's development.
