The Ghana Union of Traders’ Associations (GUTA) has raised concerns over the government’s newly announced VAT reforms, warning that the changes could negatively affect traders, particularly small and medium enterprises.
In a statement issued on November 18, 2025, GUTA said the new VAT threshold of GH₵750,000 creates an “unfair segregation” in the marketplace.
Under the reforms, traders earning above the threshold must charge an additional 20% VAT, while those below it remain exempt. The association cautioned that this uneven playing field could drive customers toward lower-priced traders, disadvantaging those required to charge VAT.
GUTA also noted that traders who previously paid a 4% flat VAT rate will now be compelled to apply the full 20% VAT once they exceed the daily turnover exemption of GH₵2,366, potentially leading to higher prices and loss of customers.
To address these disparities, the union is urging the government to allow traders to opt for a modified tax system that promotes fairness and encourages voluntary compliance.
On the introduction of Artificial Intelligence (AI) systems at the ports, GUTA welcomed the move but insisted that the government must first rationalise port taxes, as previously assured. The union stressed that addressing high and complex taxes is key to improving trade facilitation.
GUTA reiterated its commitment to working with the government and stakeholders to ensure the reforms strengthen revenue mobilisation without harming the livelihoods of Ghanaian traders.
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