As the government prepares grounds to reform the Value Added Tax (VAT) system, the Ghana Union of Traders Association (GUTA) is demanding a broader stakeholder engagement where the views of all relevant bodies are considered.
GUTA says it should not be the case that only a small group of technocrats will be assembled to reform the VAT for the broad and wider stakeholders. President of GUTA, Dr. Joseph Obeng, says VAT remains a “goldmine” for revenue generation, and hence its structuring must not be left in the hands of a few policymakers without industry participation.
Speaking at the 2025 Deloitte Economic Dialogue on Ghana’s latest budget statement, Dr. Obeng emphasized that traders and business owners should be actively engaged in the VAT reform process to ensure a fair and effective tax system.
“But for VAT, we are waiting patiently for a better discussion, without emotions. There’s a lot to discuss, and it shouldn’t be that some technocrats will go and do it alone. VAT is a goldmine if structured well, but there’s no way to structure it without our involvement,” he stated.
One of the key concerns raised by Dr. Obeng was the current VAT threshold system, which determines who qualifies to pay VAT based on business benchmarks. He argued that this system creates distortions in the marketplace, giving some traders an unfair advantage while burdening others with taxes.
“The thresholds used to define who pays VAT should be removed. If we want to ringfence certain areas, such as foodstuff sellers at Makola or Kejetia, to be exempt, we all agree that they should not be taxed. But within the same trading space, where benchmarks define who pays and who doesn’t, it creates a loophole. Consumers will simply shift to those who are not required to charge VAT, defeating the entire purpose,” he explained.
Dr. Obeng’s remarks reflect growing frustration within the business community over taxation policies that are developed without direct stakeholder consultation. GUTA’s stance adds to the broader private sector calls for transparency and inclusivity in Ghana’s fiscal decision-making processes.
Meanwhile, Minister for Finance, Dr. Cassiel Ato Forson has announced that the VAT reforms will be undertaken this year. He told Parliament the government is awaiting consultation with the IMF before the reforms can be undertaken.
