The Ghana Union of Traders Association GUTA says all retail outlets regardless of their size should operate under the flat VAT rate scheme.

Under the flat VAT rate scheme which is yet to be introduced, retailers will be required to charge VAT of three percent and file the returns every month.

However the new scheme will apply to retailers with annual turnover of between 100 million and 1.2 billion cedis. But leaders of the traders association argue that most big retail companies who will continue to operate the standard VAT scheme defraud the system and will have undue advantage over the small retailers.

In a related development the Commissioner of VAT Anthony Ewereko Minlah says the flat VAT rate will enhance tax compliance. He says the process has been made simpler and with support from the various traders association, its implementation should be smooth

Small retailers constitute about 16 percent of registered traders but contribute only 2 percent of VAT from traders.

The VAT Service hopes to correct the anomaly with the passage of the flat VAT rate bill by Parliament.