GUTA Demands Urgent Review of VAT Structure Over Rising Business Costs
President of the Ghana Union of Traders Association (GUTA), Dr Joseph Obeng, is calling on government to urgently review the country’s Value Added Tax (VAT) regime, citing the cascading nature of the tax as a key contributor to the high cost of doing business in Ghana.
Speaking in an interview on Wednesday, May 14, Dr Obeng stated that the current VAT system imposes an undue burden on businesses, and must be restructured ahead of the 2025 national budget presentation in November.
“We have to revise the VAT, we have to restructure. The cascading effect of VAT is one major factor in costing. And it is not affecting businesses positively,” he stated.
He further disclosed that Finance Minister Dr Cassiel Ato Forson had previously assured stakeholders of the formation of a task force to review the VAT system and engage with the private sector on the way forward. However, he lamented the lack of progress and stakeholder consultation on the matter.
“The Finance Minister, Dr Ato Forson, promised they were going to form a taskforce to work on this, but we haven’t gotten any meeting to that effect for us to make our inputs. They should fast-track before the November 2025 budget,” he added.
Dr Obeng emphasised the need for inclusive dialogue and prompt action to restructure the VAT system in a manner that fosters business growth and enhances economic stability.
The call by GUTA comes amid persistent complaints by businesses about tax bottlenecks, particularly the compounding nature of VAT on goods and services across the supply chain, which ultimately raises prices for final consumers.
