Audio By Carbonatix
The leadership of the Ghana Union of Traders Association (GUTA) has demanded the immediate suspension and withdrawal of the newly formed revenue mobilisation task force of the Ghana Revenue Authority (GRA) to avoid a looming confrontation.
Its president, Clement Boateng, in a press conference expressed deep frustrations over GRA’s recent enforcement tactics.
Speaking on the implementation challenges of the new 20% VAT regime, Mr. Boateng made it clear that while traders are willing to comply, they will not be intimidated by aggressive field operations.
"We demand that GRA halt the tax force that they have formed and engage in meaningful talks to address implementation challenges because we don't want to have any confrontation with the tax force. And we are prepared to face them squarely," Mr. Boateng declared.
The call follows GRA’s effort to intensify efforts to close a 60% VAT compliance gap through its National VAT Compliance and Enforcement Team. However, GUTA argues that the current system is full of complex calculations and cascading price effects that many informal traders lack the technical capacity to navigate.
Calling for government intervention, GUTA stressed that a fair and effective tax system can be achieved through constructive dialogue rather than coercion.
"We call on the government to intervene and ensure GRA works collaboratively with traders. We urge the government to act urgently, protecting traders and promoting compliance and fostering Ghana's development. We believe our concerns will receive the utmost attention that it deserves, and we look forward to a constructive dialogue with the authorities." He added.
While Mr. Boateng has recently urged traders to reduce prices following the Cedi's appreciation, he maintains that an "unfavourable" tax environment could negate these economic gains.
Under the new VAT Act, traders are currently transitioning from a 4% flat rate to a standard 20% system, a move GUTA claims are pushing up costs for both businesses and consumers.
After failing to meet its revenue mobilisation target for 2025, GRA is faced with a daunting task of rallying about GH¢230 billion in 2026 to support the national budget and fiscal sustainability.
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