The Ghana Union of Traders’ Associations (GUTA) has called for an urgent review of the newly implemented VAT regime under Act 1151, warning that its current structure poses serious challenges to traders and could negatively impact consumers and jobs if not addressed.
At a press conference on Wednesday addressed by GUTA President, Clement Boateng, the Association expressed deep concern over the new VAT system, describing it as “cumbersome” for traders in the informal sector.
According to the Association, it had earlier submitted inputs to government ahead of the presentation of the 2026 Budget, raising concerns about the abolition of the flat VAT rate. However, GUTA says its proposals were not incorporated.
Following the budget presentation, GUTA engaged the Ghana Revenue Authority (GRA) and both parties agreed on education and sensitisation programmes as well as the formation of a technical committee to address implementation challenges.
However, GUTA alleges that the GRA has failed to honour those resolutions and has instead constituted a task force to compel traders to comply.
“Despite our efforts, GRA has not respected the resolutions. Instead, they’ve formed a task force to harass and coerce traders into submission,” the Association stated.
GUTA further argued that while it supports tax compliance and acknowledges the government’s need for revenue to drive development, the VAT regime must be simplified and business-friendly.
“We expected a tax-friendly VAT that broadens the tax base, not a regime that burdens traders with complex calculations, paperwork and cascading price effects,” the statement noted.
The Association said its engagements with members across regions reveal widespread opposition to the new system, with traders struggling with input-output VAT calculations and lacking the expertise and resources to hire tax professionals.
GUTA rejected claims that Ghana’s low tax-to-GDP ratio is due to unwillingness to pay taxes, insisting that the complexity of the tax regime makes compliance difficult and leads to unintentional infractions, penalties, and business sustainability challenges.
GUTA is therefore demanding:
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An urgent review of Act 1151 under a certificate of urgency and the reintroduction of a simplified 3–4 percent VAT regime for the informal sector.
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Intensified trader registration and education by the GRA to broaden the tax net.
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Making the new VAT regime optional for traders who are comfortable using digital platforms and e-services.
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Introducing incentives for shops and retail outlets to register and collect VAT, while encouraging consumers to demand VAT receipts.
The Association also urged its members not to return their old VAT booklets until a resolution is reached, citing consumer resistance to VAT receipts due to price differentials.
GUTA called on government to intervene and ensure that the GRA halts what it describes as harassment, dissolve its task force, and engage in meaningful dialogue to address the implementation challenges.
“We urge the government to act urgently, protecting traders, promoting compliance, and fostering Ghana’s development,” the statement concluded.
