The Ghana Union of Traders’ Associations (GUTA) has expressed strong reservations about the government’s newly introduced Value Added Tax (VAT) reforms, cautioning that the changes could place traders, especially small and medium-scale businesses, at a serious disadvantage.
In a statement released on Tuesday, November 18, 2025, GUTA said the revised VAT threshold of GH₵750,000 threatens to create what it describes as an unequal and distorted marketplace.
Under the new system, traders who exceed the GH₵750,000 annual turnover mark will be required to charge 20% VAT, while those who fall below it will remain VAT-exempt. According to the association, this divide could force customers to patronise the exempt group, making it harder for VAT-registered businesses to compete on price.
GUTA added that the reform also affects traders previously paying the simplified 4% flat rate. Once they surpass the daily turnover ceiling of GH₵2,366, they must automatically apply the full 20% VAT, an abrupt shift the union fears will push prices higher and drive away customers.
To prevent what it calls unintended economic shocks, the union is urging government to introduce an optional, modified VAT structure that supports fairness and encourages more traders to comply willingly with tax obligations.
The association also reacted to the government’s plan to deploy Artificial Intelligence (AI) systems at the ports. While welcoming the innovation, GUTA insisted that the long-standing issue of high port taxes must be addressed first, as previously promised by authorities. Rationalising port charges, it argued, is essential to improving trade efficiency and reducing the cost of doing business.
GUTA reaffirmed its readiness to collaborate with government to ensure that tax reforms help improve national revenue without crippling local businesses that are already battling tough economic conditions.
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