Audio By Carbonatix
The Ghana Union of Traders’ Associations (GUTA) has issued a blistering ultimatum to the government and the Ghana Revenue Authority (GRA), demanding an immediate suspension and review of the VAT Act 1151.
Addressing a press conference on Wednesday, February 11, 2026 GUTA President Clement Boateng warned that the current implementation of the Act is stifling the trading community and could lead to widespread industrial action if their grievances are not addressed.
GUTA argued that most of the traders under their trade fall below the input threshold making the said VAT reform high, and sky-rocketing prices.
GUTA further stated that the complex nature of the current VAT structure makes it unattractive and difficult to comply with. Mr. Boateng, who chaired a meeting emphasised that for the informal sector which makes up the bulk of Ghana’s economy, simplicity is the key to tax compliance.
"We are calling on the government to review the VAT Act 1151 urgently. The status quo must be restored to a 3% to 4% flat rate for the informal sector," Boateng stated. "This is the only way to make compliance easy and realistic for the average trader."
GUTA argues that the current standard rate system is administratively burdensome for small-scale importers and retailers, leading to unintended tax evasion and friction between traders and GRA officials.
Rather than hiking rates or complicating the process for existing taxpayers, GUTA suggests that the GRA focuses on horizontal growth. Mr. Boateng challenged the revenue authority to step out of their offices and onto the shop floors to ascertain the true situation on the ground.
"GRA should intensify trader registration and education to broaden the tax net and increase revenue," Boateng urged. "Instead of over-taxing the few who are already compliant, let us find the thousands who are outside the system."
The Union also suggested that government should make VAT registration an attractive prospect rather than a purely punitive one.
"Introduce incentives for shops and retail outlets to mandatorily register and pay VAT. When you broaden the tax base through incentives, the burden on the individual trader lessens, and national revenue naturally climbs," the GUTA President added.
Latest Stories
-
Dad unlawfully killed daughter in Texas shooting, coroner rules
24 minutes -
Anas wins 7 – 0 as SC unanimously rejects attempts to reverse judgment in his favour
35 minutes -
The cocoa conundrum: Why Ghana’s farmers are poor despite making the world’s best chocolate
2 hours -
Powerful cyclone kills at least 31 as it tears through Madagascar port
2 hours -
GoldBod summons 6 gold service providers over compliance exercise
3 hours -
Power disruption expected in parts of Accra West as ECG conducts maintenance
3 hours -
Police investigate alleged arson attack at Alpha Hour Church
3 hours -
Heavy Sunday downpour wrecks Denyaseman SHS, schools, communities in Bekwai Municipality
3 hours -
Ridge Hospital is in critical condition – GMTF Boss appeals to corporate Ghana
3 hours -
Introduce long term measures to tackle challenges in cocoa sector – IERPP to government
4 hours -
Agricultural Economist proposes blended financing model to support cocoa sector
4 hours -
NPP MP warns against reducing producer price as government rolls out cocoa reforms
4 hours -
Tano North MP urges halt to grain exports over food glut
4 hours -
Farmers hopeful as government moves to expedite cocoa payments
5 hours -
Tensions at Agbogbloshie market women oppose AMA drain cleaning exercise, items confiscated
5 hours
