We are partners – GRA assures traders on 20% VAT rollout

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The Ghana Revenue Authority (GRA) has assured traders that it remains committed to engaging stakeholders over the implementation of the new Value Added Tax (VAT) system, amid concerns raised by the Ghana Union of Traders Association (GUTA).

Deputy Commissioner in charge of Communications and Public Affairs, Florence Asante, explained that GRA and GUTA had previously agreed to establish a joint technical committee to address the challenges posed by the new tax regime.

“We met with GUTA leadership a while ago, and together we issued a release confirming the formation of a joint technical team to address their concerns,” she said in an interview on Adom FM’s morning show Dwaso Nsem.

She added, “GUTA has already submitted the names of their representatives, and our team is on board as well. The framework has been established, but we have not met yet. We have called GUTA leaders this week, and a meeting will take place shortly.”

Madam Asante stated that GRA is responsive and acting within the law.

“It’s not as if we are ignoring them. The law gives us the mandate to review the tax, and we are only applying it. We cannot change the law on our own. We are partners with GUTA and other stakeholders, and we will meet them to ensure the law is implemented fairly,” she said.

Asked why major stakeholders appeared to have been left out of discussions, she said, “That is not the case. In all our previous engagements, we have worked closely with GUTA and other leaders. We will not deliberately omit anyone from these consultations.”

Reacting on the same show, GUTA President Clement Boateng acknowledged the cordial relationship with the GRA but expressed frustration over a lack of follow-up.

“Yes, we have a good working relationship with the GRA, but in this tax issue, we have only met with them once. Since then, we have not heard back, even though we agreed to engage on the challenges we are facing,” he said.

The new VAT regime replaces the previous 4% flat-rate system for some traders with a standard rate of about 20%, allowing full input tax deductibility.

While the policy aims to streamline tax administration, widen the tax net, and improve revenue mobilization, market traders, particularly at Abossey Okai and other major trading hubs, have raised concerns that the transition could disrupt business operations and push up prices if not properly managed.

GUTA has called on the GRA and the government to engage traders respectfully and transparently, warning that intimidation and sudden enforcement could hurt compliance and destabilize the market.

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