GUTA President, Dr Joseph Obeng

The Ghana Union of Traders Association (GUTA) has promised to make a strong case for the VAT Flat rate to be reviewed in the Mid-year budget which is expected to come off in July.

The new policy imposes a flat levy on businesses operating below five hundred thousand threshold. Retailers above the threshold are made to pay 19.25 percent as standard rate.

Describing the tax as retrogressive, the President of GUTA, Dr. Joseph Obeng said the union will push for a review of the levy.

“We have already petitioned the Ministry of Finance. We expect the government to listen to us and address this VAT issue. It is affecting retailers in the country,” he said.

Mr. Obeng argued that the new system has created an unfair market environment that has resulted in many retailers avoiding tax payment.

“If you go to the markets right now, there are many retailers who are above the ¢500,000 threshold but are paying the VAT Flat rate. It is bad”.

He added the situation has also resulted in price hikes—pushing inflation up.

“I have always said that this high inflation we are currently facing in the country is partly due to this policy,” he said.