By Mavis Paintsil, Accra
The Ghana Union of Traders’ Associations (GUTA) is calling for an urgent review of the newly implemented VAT regime under Act 1151, citing serious challenges for traders and potential negative impacts on consumers and jobs.
GUTA President, Clement Boateng, described the new system as “cumbersome” for informal sector traders, who struggle with complex computations and lack expertise.
The Association alleges that the Ghana Revenue Authority (GRA) has failed to honor agreements to address implementation challenges, instead forming a task force to compel compliance.
GUTA demands a review of Act 1151, reintroduction of a simplified 3-4% VAT regime for the informal sector, and intensified trader registration and education.
Key Challenges Faced by Traders:
- Complex input-output VAT calculations
- Excessive paperwork and cascading price effects
- Lack of technical expertise and administrative capacity
- Unintentional non-compliance and potential penalties
GUTA’s Proposals:
- Reintroduction of a simplified 3-4% VAT regime for the informal sector
- Intensified trader registration and education
- Optional adoption of the new digital VAT system
- Incentives for shops and retail outlets to register and collect VAT
Follow-up Questions:
- How will the GRA respond to GUTA’s demands, and what are the potential implications for revenue mobilization?
- What measures can be taken to support traders in the informal sector, and how can the VAT regime be made more business-friendly.
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