Audio By Carbonatix
The Ghana Union of Traders’ Associations (GUTA) is warning the government not to rush into rolling out Artificial Intelligence systems at the ports when the tax environment for traders is already unbearable.
The Association says the new VAT reforms have thrown many traders, especially small and medium enterprises, into confusion and financial distress, and insists that “all taxes at the port be rationalised before the implementation of AI systems.”
In a statement issued on November 18, First Deputy Secretary General Richard Amamoo said GUTA has been observing the recent VAT changes “with grave concern.”
He said the government’s intention to enhance revenue collection is understandable, but the reforms are already creating deep distortions in the trading environment.
According to him, the new VAT threshold has introduced a form of segregation in the marketplace.
He said two traders selling the same commodity in the same market are now treated differently.
Mr Amamoo explained that traders whose turnover exceeds the new GH¢750,000 threshold must charge an additional 20 per cent VAT, while those below the threshold remain exempt.
He warned that this will push customers to buy from the exempted traders, leaving others at a huge disadvantage.
Mr Amamoo added that traders who were previously on the 4 per cent flat rate scheme now face a 20 per cent VAT charge because their turnover crossed the threshold.
He pointed to the daily turnover exemption of GHC2,366 and said any excess pushes a trader into the standard VAT regime.
Mr Amamoo said the result is higher prices for consumers and the loss of business for those caught in the new bracket.
GUTA is calling for parity in the system and wants government to allow traders to choose a modified tax arrangement that ensures fairness.
He said a level playing field will help promote voluntary compliance and reduce the risk of non-compliance driven by market pressure.
Mr Amamoo acknowledged the government’s announcement about introducing AI technology at the ports to improve efficiency.
He said GUTA supports the use of technology that enhances trade facilitation. But he stressed that the tax environment must be fixed first.
In his words, GUTA “reiterates our request that all taxes at the port be rationalised before the implementation of AI systems.”
He said the union remains committed to working with government and stakeholders so that the VAT reforms achieve their goals without destroying the livelihoods of Ghanaian traders.
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