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
-
Teacher unions declare nationwide strike over unpaid promotion arrears and delayed negotiations
25 minutes -
Engage Now Africa and LDS church commission boreholes for five communities in Upper East
46 minutes -
GPL 2026/27: Karela United bank on home form against Hearts of Oak
55 minutes -
NPLs declined to 15.7% in August 2026
1 hour -
Existing Cedi notes to remain legal tender alongside Heritage Series – BoG
1 hour -
Consumer, business sentiments positive – BoG
1 hour -
There’ll be no GH¢500 Cedi note as part of Heritage Series issuance – BoG
2 hours -
Heritage Series Cedi notes to modernise cedi while preserving national identity – BoG
2 hours -
Ghana’s business environment at ‘Inflection Point’ as private Sector takes greater lead — Vish Ashiagbor
2 hours -
At least 2 new airlines could join domestic aviation market by 2027 – GCAA Director General
2 hours -
What if Ghana’s next tourism boom begins with Ghanaians?
3 hours -
Energy Commission to monitor EV charging stations
3 hours -
Invest with confidence, Ghana’s golden era is beginning – Finance Minister
3 hours -
Do Ghana to launch The Great Ghana Day Out on World Tourism Day
3 hours -
Clean up our politics before politics cleans us up
3 hours