The Ghana Union of Traders’ Associations (GUTA) has raised concerns over the government’s recent Value Added Tax (VAT) reforms, warning that the changes could unintentionally harm traders, particularly small and medium enterprises.
GUTA said the new VAT threshold requiring businesses with annual turnover above GH¢750,000 to charge 20% VAT while exempting those below creates unequal conditions in the same markets.
The association noted that two traders selling identical goods could now face different tax obligations, a situation it described as “unfair” and likely to divert customers to lower-priced, exempt traders.
The union also highlighted the impact on traders who previously operated under the 4% flat rate scheme but now fall into the standard VAT regime because their turnover exceeds the threshold. GUTA said the shift will increase prices and reduce competitiveness, adding that the daily turnover exemption of GH¢2,366 is too low and will “push many hard-working traders into higher taxes overnight.”
To prevent widespread non-compliance and maintain business confidence, the association is urging the government to allow traders to opt for a modified tax system that ensures parity and promotes voluntary compliance.
GUTA, however, expressed its commitment to engaging authorities, stressing that reforms meant to improve revenue collection must not undermine the livelihoods of Ghanaian traders.
