The Ghana Union of Traders Association (GUTA) has issued a strong ultimatum to the government and the Ghana Revenue Authority (GRA), calling for an immediate halt and reassessment of the VAT Act 1151.
During a press conference on February 11, 2026, at the GUTA Conference Hall in Accra, GUTA President Mr. Clement Boateng warned that the current implementation of the Act is harming the trading community and could trigger widespread industrial action if their concerns are not addressed.
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GUTA representatives argued that many traders fall below the input threshold, making the VAT reform burdensome and contributing to soaring prices.
They also pointed out that the complicated nature of the current VAT structure makes it difficult for traders to comply. Mr. Boateng, who led the meeting, stressed that simplicity is essential for tax compliance, especially for the informal sector, which constitutes a significant part of Ghana’s economy.
“We urge the government to urgently review the VAT Act 1151. The previous flat rate of 3% to 4% for the informal sector should be reinstated,” Boateng stated. “This is the only way to ensure that compliance is manageable for the average trader.”
GUTA contended that the current standard rate system imposes excessive administrative burdens on small-scale importers and retailers, leading to unintended tax evasion and tension between traders and GRA officials.
Instead of increasing rates or complicating the process for current taxpayers, GUTA proposed that the GRA should focus on expanding the tax base. Mr. Boateng challenged the revenue authority to engage directly with traders to understand the real situation on the ground.
“GRA should enhance trader registration and education to widen the tax base and boost revenue,” Boateng urged. “Rather than overburdening those who are already compliant, we should identify the thousands who are outside the tax system.”
GUTA also recommended that the government make VAT registration appealing rather than solely punitive. “Introduce incentives for shops and retail outlets to register and pay VAT. By broadening the tax base through incentives, the burden on individual traders decreases, and national revenue will naturally increase,” he added.
Source: Bugbila Moadow
