GUTA Slams GRA’s VAT Regime, Demands Simplified Tax System

Story by Fada Amakye

The Ghana Union of Traders Association (GUTA) has expressed deep concern over the new VAT regime under Act 1151, implemented by the Ghana Revenue Authority (GRA). President Clement Boateng stated that the regime poses significant challenges to traders, threatening business operations, consumer prices, and jobs.

GUTA had submitted its input to the Ministry of Finance, highlighting concerns about the abolition of the flat rate, but was ignored. Despite agreeing on education and sensitization programs with GRA, the authority has formed a task force to coerce traders, undermining their agreement.

Boateng argued that the system is cumbersome, with complex calculations and paperwork, leading to confusion and difficulties for traders. GUTA proposes a simplified 3-4% VAT for the informal sector, making it easier for traders to comply.

The association also suggests making the new regime optional, introducing incentives for shops to register and collect VAT, and educating consumers to demand VAT receipts. GUTA urges members to remain steadled and not return old VAT booklets until a resolution is reached.