The Ghana Union of Traders’ Associations (GUTA) has expressed deep concern over the potential impact of the government's new Value Added Tax (VAT) reforms and the planned introduction of Artificial Intelligence (AI) systems at the ports.

In a statement issued by the First Deputy Secretary General, Mr. Richard Amamoo, GUTA acknowledged the government's efforts to improve tax compliance and revenue collection but said the reforms carry “unintended consequences” that could negatively affect traders, especially small and medium-scale enterprises.

Segregation of Traders

According to the statement, the new VAT threshold of GH¢750,000 creates a situation where “two traders dealing in the same commodity line in the same marketplace are treated differently.

GUTA explained that traders above the threshold will be required to charge an additional 20% VAT, while those below remain exempt. The Association warned that this disparity “will force customers to choose where to buy,” which could disadvantage traders who fall into the higher tax category.

Increased Burden on Former Flat-Rate Traders

GUTA further noted that traders who previously operated under the 4% flat VAT rate will now face a 20% charge once their turnover crosses GH¢750,000.

The group highlighted that although the daily turnover exemption of GH¢2,366 remains, “any excess pushes the trader into the standard VAT regime,” which they believe will result in higher prices for consumers and a potential loss of business for affected traders.

Call for Fairness and a Modified Tax System

To promote fairness and prevent undue pressure, GUTA urged the government to allow traders to opt for a modified tax system.

The association argued that “a level playing field will encourage voluntary compliance and reduce the risk of non-compliance due to unfair competitive pressures.”

AI at the Ports: Support with Conditions

While supporting the government’s plan to introduce AI technology at the ports, GUTA emphasised that all port taxes must first be harmonised. The Association stated, “We reiterate our request that all taxes at the port be rationalised before the implementation of AI systems, as promised.”

Commitment to Collaboration

GUTA assured the public that it remains committed to working with government and stakeholders to ensure that the VAT reforms achieve their objectives without jeopardising the livelihoods of traders.

“We remain committed to constructive dialogue to ensure that the VAT reforms achieve the intended objectives without harming the livelihood of Ghanaian traders,” the statement added.