The President of the Ghana Union of Traders’ Associations (GUTA), Clement Boateng, says traders nationwide are receiving what he describes as threatening messages from the Ghana Revenue Authority (GRA) over the implementation of the new Value Added Tax (VAT) regime.
Speaking on Adom FM’s Dwaso Nsem, Mr Boateng revealed that he has been inundated with calls from members nationwide after the GRA directed traders to surrender their old four percent VAT flat-rate books and enrol onto the new 20 percent VAT system.
“The number of calls I receive each day from members is alarming. Members are calling me throughout Ghana because GRA has called them to surrender the four percent book for the enrolment to the 20%,” he said.
According to him, the approach being used by the tax authority is creating fear and uncertainty in the markets.
“People are already receiving threatening messages that GRA will soon go to the market with their taskforce to implement the new VAT regime,” Mr Boateng added.
He warned traders against rushing to comply under pressure, insisting taxation should be flexible and considerate of business realities.
“I have told them nobody should surrender. Laws were made for man and not man for laws. People shouldn’t be forced to pay taxes.
“Taxes should be made affordable and flexible for everyone to pay so the compliance level will be high, else a lot of people will evade, and you will not meet your target,” he stated.
Mr Boateng argued that the new VAT system, if enforced aggressively, would ultimately shift the burden onto consumers.
“Definitely if this takes effect, the consumer will suffer the brunt. No businessman is Father Christmas,” he said.
He further expressed concern about the wider economic impact, saying current market conditions cannot absorb additional tax pressure.
“There is no doubt about the micro-economic indices. Everyone knows that it is going down. It is currently reflecting because prices have gone down even though there are a few traders who don’t want to reduce prices. If this system is going to be implemented, prices will go high again,” he cautioned.
Under the new VAT regime introduced by the GRA, the previous 4% flat-rate VAT system for some traders is being replaced with a standard VAT rate of about 20%, with full input tax deductibility. The policy is aimed at streamlining tax administration, widening the tax net and improving revenue mobilisation.
However, spare parts dealers and market traders, particularly at Abossey Okai and other major trading hubs, have raised concerns that the transition could disrupt business operations and increase prices if not properly managed.
GUTA is calling on the GRA and government to engage traders more respectfully and transparently, warning that intimidation and sudden enforcement could hurt compliance and destabilise the market.
Mr Boateng stressed that cooperation, not threats, is the key to successful tax reforms in Ghana’s informal and semi-formal trading sectors.
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