GUTA President Clement Boateng
The Ghana Union of Traders’ Associations (GUTA) has called on the government to urgently review the newly introduced VAT regime under Act 1151, warning that its implementation could disrupt business operations and increase consumer prices.
Addressing a press conference on February 11, 2026, GUTA President Clement Boateng expressed deep concern about the new VAT regime under Act 1151.
He claimed that it “poses significant challenges to the trading community” and could lead to “increased costs for consumers and potential job losses” if not addressed promptly.
GUTA said it had submitted proposals ahead of the 2026 Budget, particularly opposing the abolition of the flat-rate VAT system, but its concerns were ignored.
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“Prior to the government’s presentation of the 2026 budget to Parliament, GUTA submitted input as requested, highlighting concerns about the abolition of the flat rate. Unfortunately, our concerns were not taken on board,” the Association stated.
The Association said that after the budget presentation, it engaged the Ghana Revenue Authority (GRA) and agreed on sensitisation programmes and the formation of a technical committee to address implementation challenges. However, it accused the GRA of failing to honour that agreement.
“Despite our efforts, GRA has not respected the resolutions. Instead, they’ve formed a task force to harass and coerce traders into submission,” GUTA alleged.
GUTA also challenged the GRA’s position that VAT is strictly a consumption tax borne by the final consumer, describing it as “concerning, especially when consumers are requesting price reductions due to stable economic numbers.”
While reaffirming its support for revenue mobilisation and tax compliance, GUTA said it expected a more business-friendly system.
“The government needs revenue for development, and we support tax compliance. However, we expected a tax-friendly VAT that broadens the tax base, not a regime that burdens traders with complex calculations, paperwork, and cascading price effects,” the statement said.
According to GUTA, the new regime is cumbersome, particularly for informal sector traders who lack technical expertise.
“Traders, especially in the informal sector, struggle with complex computations, lack the necessary expertise, and can’t afford to hire VAT professionals. This leads to unintentional non-compliance, penalties, and a negative impact on business sustainability,” it noted.
The Association rejected claims that Ghana’s low tax-to-GDP ratio is due to traders’ unwillingness to pay taxes, arguing instead that it stems from a “high and complex tax regime that makes compliance difficult.”
GUTA proposed an urgent review of Act 1151, including the introduction of a simplified 3–4 percent VAT regime for the informal sector. It also called for intensified trader registration and education, optional adoption of the new digital VAT system, and incentives to ensure shops and retail outlets register and collect VAT.
In the meantime, GUTA urged members “to remain steadfast and not return their Old VAT booklets, until a resolution is reached,” adding that in some cases “consumers reject the VAT receipts when traders pull it out because of price differentials.”
It further demanded that the GRA halt its task force operations and engage in “meaningful dialogue” to resolve the concerns.
“The policymakers responsible for this belligerent law must be part of the solution,” GUTA stated, urging government intervention to “protect traders, promote compliance, and foster Ghana’s development.”
The Association said it remains open to constructive engagement with the authorities.
MA
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Source:
www.ghanaweb.com