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.

READ ALSO:

• GOC President engages AIPS President, praises SWAG for impact
• NPP external branch delegates petition NEC over proxy voting ban
• South Korea utilized their chances – Otto Addo after Black Stars’ defeat

The commitment followed a courtesy call by the Chamber’s executives, during which they outlined their vision for a cleaner and healthier Ghana. They highlighted the rising number of vehicles on Ghana’s roads—nearly three million—along with motorbikes, tricycles, shipping companies, and private airlines, all contributing to environmental strain, health hazards, and road accidents.

In response, Dr. Obeng commended Autodata Ghana for its foresight and pledged to actively engage in advocacy and public awareness campaigns. “Environmental protection and public health are of paramount importance. God blessed humanity with a rich environment, but human activities such as galamsey, unsustainable practices, and unchecked fossil fuel emissions are destroying it at an alarming rate,” he said.

He further stressed that Ghana should learn from Europe, where fossil fuel emissions are treated as a serious threat, and called for closer collaboration with the Environmental Protection Agency and other stakeholders to enforce policies and implement practical solutions.

The Chamber’s Executive Secretary, George Dumenu, described Dr. Obeng’s endorsement as a major boost, saying, “His support strengthens our resolve. We are more determined than ever to push forward with advocacy, infrastructure development, and partnerships that will help Ghana meet its 15% emissions reduction target by 2030.”

The meeting concluded with Dr. Obeng taking the delegation on a tour of his showroom, sharing insights on aligning technology and infrastructure with sustainable initiatives such as electric vehicles and green transport systems. The visit marks the beginning of a strategic collaboration to protect public health and preserve the environment for future generations.

Source: Adomonline

ALSO READ:

• Chamber of Autodata Ghana calls for greater local content in Automotive components development policy 

• Chamber of AutoData Ghana expresses disappointment in gov’t

The Association argues that retail trading is explicitly reserved for Ghanaian citizens under national law and laments the growing disregard for this provision.

According to Section 27(1) of the Ghana Investment Promotion Centre Act, 2013 (Act 865), non-Ghanaians are prohibited from engaging in retail trade, hawking, petty trading, or operating in stalls and markets.

Yet, foreign nationals continue to visibly flout this restriction, especially in major trading centres, sparking mounting frustration among local traders.

Traders, particularly mobile phone dealers and shopkeepers, have expressed dismay over what they describe as weak enforcement of the law, allowing foreign operators to undercut prices and threaten the sustainability of Ghanaian businesses.

In an interview with Citi FM, the Greater Accra Regional Chairman of GUTA, Nana Kwabena Peprah, criticised the government’s inaction and warned of growing agitation among members.

“We’ve not had any response from the government after the protest at Circle, neither have we had any invitation from the government to dialogue on the issues. Due to the protest at Circle, we are getting feedback from all other sectors including the regions,” he stated.

“People are agitating and the government must immediately take action or else, GUTA members will begin demonstrations on those issues.”

The threat follows a recent protest at Kwame Nkrumah Circle in Accra and comes amid renewed debate about the country’s retail trade policy and its enforcement mechanisms.

GUTA has cautioned that if regulatory authorities fail to rigorously implement the GIPC Act’s provisions, the consequence could be widespread unrest within Ghana’s commercial landscape.

Source: Myjoyonline.com

ALSO READ:

• BoG assures GUTA of forex amid trader concerns

• GUTA slams PURC over tariff increase despite stronger cedi

This follows a meeting between the central bank and the leadership of the Ghana Union of Traders’ Associations (GUTA), during which the BoG assured that sufficient foreign currency is available to meet legitimate business needs.

In a statement issued by GUTA, its president, Dr. Joseph Obeng, disclosed that the central bank has pledged to investigate the concerns raised by traders and engage commercial banks to understand the reasons behind the perceived shortage of forex.

The BoG also promised to take the necessary steps to address any bottlenecks within the commercial banking sector that may be affecting the smooth distribution of forex to importers and other traders.

In the meantime, GUTA is urging its members and the wider business community to remain calm and assured of the BoG’s commitment to resolving the issue.

Dr. Obeng encouraged members to report any persistent challenges in accessing forex to the association for further engagement with the relevant authorities.

The intervention comes at a time when several traders have raised concerns about delays and difficulties in acquiring foreign currency—a situation they fear could disrupt imports and increase the cost of doing business.

This comes amid mounting calls for price reductions following the appreciation of the Ghana cedi and a recent drop in fuel prices.

However, many traders have maintained that they are not ready to slash prices, citing the need to first clear existing stock purchased at higher costs.

Despite this explanation, Parliament has called on them to justify their stance.

Committee Chairman Alexander Gabby Hottor-Dze acknowledged that although there have been some price reductions, they do not match the level expected given the cedi’s appreciation.

“There has been price reduction in some quarters, but these are not commensurate with the impact of the appreciation of the cedi,” he said.

He explained the rationale for the meeting: “The Committee on Trade, Industry, and Tourism called for this engagement to inquire into why businesses and service providers are reluctant to reduce their prices, the impact on the economy, and the way forward.”

“We have assembled here most of the relevant stakeholders who would assist the committee to deliberate on the matter,” he added.

Last month, the Abossey Okai Spare Parts Dealers Association in the Greater Accra Region directed its members to reduce prices — a move expected to bring some relief to consumers and potentially trigger reductions in transport fares.

GUTA also hinted at similar price cuts in response to the cedi’s strong performance.

However, consumers say the cost of goods and services on the market remains high, despite these assurances.

ALSO READ:

• Prices will only fall if… – GUTA

• GUTA slams PURC over tariff increase despite stronger cedi

Speaking after a closed-door meeting with major business groups, including the Ghana Union of Traders Association (GUTA), the Association of Ghana Industries (AGI), and the Food and Beverage Association of Ghana (FABAG), the Minister emphasized that Ghana’s liberalized market economy restricts government intervention in setting prices.

“Our market system doesn’t allow the government to impose prices, but we do have the power to engage stakeholders to ensure that the benefits of economic stability trickle down to consumers,” she explained.

She disclosed that some manufacturers and direct importers have already signaled readiness to reduce prices in response to the improving economic indicators.

“I am happy to inform you that the direct importers have agreed to reduce their prices — some have already started. We have also heard from GUTA and AGI that while the Cedi’s stability is welcome, it will take a bit of time for that to be reflected in market prices. It will happen gradually,” she added.

ASO READ:

• Justice Atuguba slams NPP’s hypocrisy over Chief Justice suspension

• Ag. Chief Justice didn’t err for his role in Torkornoo’s case – Ansa-Asare

Dr. Joseph Obeng, speaking on JoyNews’ PM Express, explained that traders have been cautious because of past experiences.

“When the cedi appreciates, they see the gain, but it’s not sustained,” he said.

“That’s why people are asking me, especially when I made the call to reduce prices, ‘Are you sure this is going to last? Are you not rushing?’”

GUTA made headlines recently when it publicly appealed to the trading community to reflect the cedi’s appreciation in their pricing.

However, on the show, the GUTA president admitted that traders are hesitant because they fear history will repeat itself.

“It’s very important for us to think about how to maintain this gain,” he said. “This gain will come to nothing if we are not able to sustain it.”

He emphasized that what matters now is not just the momentary appreciation of the currency, but how the government and the Bank of Ghana work to keep the gains steady.

“We have to talk about predictability and sustainability. That’s what we should be focusing on now,” he stated.

In response to a question by host Evans Mensah about why market prices haven’t dropped, Dr. Obeng explained, “It’s because of what has happened in the past.”

“The traders are simply not ready yet. They are watching to see if this is real.”

He quickly clarified that this isn’t about unwillingness to cooperate, but about protecting businesses from potential shocks.

“Whatever we have to do—if the government puts prudent mechanisms in place, if the Bank of Ghana continues the stringent forex controls—then we can talk about maintaining it,” he said.

Dr. Obeng linked sustained currency stability to a broader economic recovery plan.

He explained that when the exchange rate remains stable, it helps bring inflation down and lower interest rates.

“This is what will push the other indicators that make businesses thrive,” he noted.

For him, the current moment should be seen as a window of opportunity.

“How are we taking advantage of the gains that we’ve made and sustaining them? That’s very important,” he stressed.

“This is how I’m looking at it—how we take advantage of the opportunity to enhance productivity.”

He believes that if stability is used to boost competitiveness in local industries, Ghana could be on the path to true economic recovery.

“If you can use the stability of the currency to enhance productivity, that will make us competitive,” he said. “Then, of course, we are on the threshold to recovery.”

ALSO READ:

• GUTA slams PURC over tariff increase despite stronger cedi

• Some business owners kick against GUTA’s directive to cut down commodity price

• GUTA urges immediate price adjustment as cedi strengthens

Speaking on JoyNews’ AM Show, Dr Obeng questioned the Public Utilities Regulatory Commission’s (PURC) decision to raise tariffs despite the falling exchange rate, calling the move ill-considered.

“There was no justification for increasing electricity bills. The PURC did not do a good job, especially when the exchange rate is declining, because they cited the exchange rate as a key reason for the hike,” he said.

He warned that such measures risk eroding the economic relief businesses and consumers are beginning to enjoy from the cedi’s recovery.

“These decisions will negate the gains we should see from falling prices,” he said, urging the government and regulators to reassess cost burdens on businesses.

Dr Obeng also called on traders to reduce prices to reflect the cedi’s appreciation, emphasising the exchange rate’s critical role in determining costs.

“Pricing depends on multiple factors, and the exchange rate is a major one. The recent drop has been significant,” he noted.

He explained that traders are saving on import duties and foreign exchange transactions, and some of these savings should benefit consumers.

“Duty payments are benchmarked against the dollar, so we’re saving there. We’re also saving on currency exchange. These gains should be passed on.”

Dr Obeng stressed that lowering prices would ultimately benefit traders by boosting consumer purchasing power.

“If consumers can’t afford goods due to high prices, it hurts our ability to turn over stock and repay banks. Reducing prices is in our own interest,” he said.

He added that demonstrating goodwill through price adjustments would strengthen traders’ position when engaging the government on broader economic issues.

“When we show good faith, we can hold the government accountable on other matters. We’re appealing to our members, but pricing involves multiple factors. Still, we want to act in good faith,” he concluded.

The national traders’ union in a statement has charged traders to consider reducing the cost of commodities sold on the market as the cedi appreciates against major trading currencies.

The cedi, has since the beginning of the year, seen a positive trend increasing by more than 10 percent.

But speaking on Luv FM, Executive Secretary of the Ashanti Business Owners, Charles Kusi Appiah says the forex is not the only determinant for the price build-up.

He surmises other cost components like utility tariff, cost of borrowing and taxes thwart call for a price reduction.

“Although this is a right call, there are other factors contributing to the price build-up. As we speak now, cost of borrowing, consumption tax [VAT] is still the same. We’ve seen some reduction in inflation by some 100 bases point but that’s not enough for a price build-up,” he told David Akuetteh on Luv in the morning.

Ashanti Regional Chairman of GUTA, Anthony Oppong, is in agreement as he says some stocks of goods were purchased before the local currency gaining some strength.

“All those stocks are not yet sold. We bought them when the dollar was selling at 16.2 cedis. So, if you want me to sell it at 13 cedis now, then it means I will make some losses. Especially for the spare parts industry when we buy goods, it takes three months before they arrive. So, if they should sell at the price now, they could run at a loss,” he said.

But some consumers who called in the show are unhappy with the situation.

“Why do the traders immediately increase the prices of their goods when the dollar goes up, but refuse to do same when it decreases,” a caller questioned.

Another added “They are doing this because the services they render are scarce to us. If they will be fair to us and wouldn’t want to milk us, they will definitely reduce their prices other than serving their selfish interest of maximizing profits”.

Meanwhile, the traders are expectant the prices will reduce in the coming days in adherence to the GUTA’s directive.

In a statement, GUTA acknowledged that the cedi has made “significant gains” against major trading currencies.

GUTA, therefore, believes this should provide some relief for ordinary Ghanaians.

“We wish to appeal to the trading community to adjust prices of goods and services and bring some relief to the consuming public,” the statement signed by GUTA President, Dr. Joseph Obeng, urged.

GUTA emphasised that the adjustment will not only promote fairness in the marketplace but also foster goodwill and trust between traders and their customers.

ALSO READ:

• Demand for forex as store of value has decreased – GUTA

• What do I do with my dollars? – GUTA reveals growing panic among traders…

According to Charles Kusi Appiah, Head of the Business and Economic Bureau of GUTA, traders are now abandoning the dollar in favor of the cedi, which has shown unexpected resilience in recent weeks.

Speaking on Joy News’ PM Express Business Edition on Thursday, May 8, he said the behavior change is a direct reflection of improved confidence in the local currency and a reduced need for forex in international transactions.

“When the cedi is not doing well, people put their trust in forex. The dollar becomes the store of value. But now the opposite has occurred. The cedi is appreciating. So why hold on to forex when you are losing value?” he said.

He explained that, in unpredictable economic environments, traders traditionally used dollars to hedge their working capital.

“You always want to see what you can do to protect your gains,” he noted.

“People used to buy forex just to hold, even without immediate need, simply because it felt safer.”

“With the introduction of GoldBod, where most international transactions use gold, the demand for forex has reduced. So there’s no need for one to hold forex for any transaction,” Mr. Appiah said.

He said members of GUTA are now reconsidering the utility of holding dollars when the cedi appears to be the safer bet.

“Someone called me today asking, ‘What am I supposed to do? I’m holding forex. Are we going to see a downtrend of forex?’ And I told him, of course, yes. The trajectory shows that the cedi is gaining strength every day.”

He advised that it makes no economic sense to cling to a depreciating currency.

“If you think you don’t have anything to do with that forex, liquidate. There are other investment options, probably the gold coin, that you can invest in so you don’t lose totally.”

According to him, the pattern is clear. “Anytime forex outperforms the cedi, our working capital gets depleted.

“That’s why people used to say, ‘Let me limit my losses by buying forex.’ But when the dynamics change, and you see there’s no need to hold it, the demand reduces. And that is accounting for the downward trend of forex in our market.”

Mr. Appiah said this shift is not just about sentiment, but real market choices.

“The confidence has been that our local currency is strong enough to be the store of value. That is what is accounting for the things we see now.”

According to him, many traders are now calling him directly to ask what to do with their dollar holdings.

“Someone called me today asking, ‘What am I supposed to do? I’m holding forex. Are we going to see a downtrend of forex?’” he disclosed on Joy News’ PM Express Business Edition on Thursday, May 8.

The GUTA official says the fear is real—and for good reason. The cedi is gaining value, and traders who once saw the dollar as a lifeline are now losing money by holding it.

“The trajectory shows that the cedi is, day in and day out, gaining strength. So it doesn’t make economic sense for you to hold on to something you are losing value on every day,” Charles Appiah warned.

He advised that those who have no urgent need for foreign currency should liquidate and consider safer alternatives.

“If you think you don’t have anything to do with that forex, liquidate. There are other investment options—probably the gold coin—that you can invest in, so you don’t lose totally.”

Charles Appiah explained that during volatile economic periods, traders naturally turned to forex as a hedge.

“People put their trust in forex when the cedi, the local currency, is not doing well. And the forex becomes the store of value.”

But the current market dynamics, he said, are completely different.

“The opposite has occurred. Now, the confidence is that the local currency is strong enough to be the store of value, so I don’t need to hold forex.”

He attributed the cedi’s recent strength partly to government initiatives like the Gold-for-Oil and Gold-for-Reserves programs.

“With the introduction of the GoldBod, where most international transactions use gold to do the transaction, the demand for forex has reduced. Therefore, there’s no need for one to hold forex for any transaction.”

According to Charles Appiah, even among GUTA members, there is a clear shift.

“Yes, the reason is that now the demand for forex has reduced when it comes to international trade. And the cedi is appreciating against the forex. Why then hold on to forex when you are losing value?”

He stressed that forex hoarding used to be a strategy to protect capital when the cedi depreciated, but that logic no longer applies.

“When we look at the dynamics within the forex and the cedi market, anytime forex outperforms the cedi, our working capital gets depleted.

“So people would say, ‘Let me make sure I put some limit on my losses.’ But when the dynamics have changed… the demand for forex reduces, and that is accounting for the downward [trend] of forex in our market.”

Charles Kusi Appiah wants traders to reassess, saying: “Dump the dollar if it’s no longer working for you.”

He gave the advice on JoyNews’ PM Express Business Edition on Thursday, May 8, pointing to recent market dynamics that show the cedi gaining strength against major currencies.

According to him, clinging to dollars or other forex holdings when not required for immediate trade or transactions is not just unwise—it is economically damaging.

“Someone called me today asking, ‘What am I supposed to do? I’m holding forex. Are we going to see a downtrend of forex?’ Of course, yes,” he said.

“The trajectory shows that the cedi is, day in and day out, gaining strength. So it doesn’t make economic sense for you to hold on to something you are losing value on every day.”

He explained that for years, the dollar was seen as a safe haven for local investors and traders who had lost confidence in the cedi.

“People put their trust in forex when the cedi—the local currency—is not doing well, and forex becomes the store of value,” he said.

“Everybody wants to reference their investments. And when you are in an environment where predictability becomes a challenge, you always want to see what you can do to protect your gains.”

But that, he noted, has changed.

“Now, forex demand has reduced when it comes to international trade, and the cedi is appreciating. Why do you then hold on to forex when you are losing value?” he asked.

“With the introduction of the Gold for Oil policy and the increased use of gold in international transactions, the demand for forex has reduced. Therefore, there’s no need for one to hold forex for any transaction,” he explained.

He confirmed that many GUTA members have already begun reducing their excessive demand for dollars.

“Yes, the opposite has occurred. Now, the confidence is that the local currency is strong enough to be the store of value, so I don’t need to hold forex. That is what accounts for the things we are seeing now,” he said.

Kusi Appiah believes this shift is one reason the cedi is stabilising.

“When the dynamics have changed and you can see that there’s no need to hold on to [forex], the demand reduces. And that is accounting for the downward trend of forex in our market.”

He urged traders to explore alternatives.

“There are other investment options—probably the gold coin—that you can invest in so that you don’t lose totally.”

In a final warning to speculators, he said: “When forex outperforms the cedi, our working capital gets depleted. But if the cedi is now stable and strong, then it’s time to rethink. Liquidate what you don’t need.”

ALSO READ:

• ‘Cedi’s stability against US Dollar will be sustained’ – BoG Governor
• Cedi’s appreciation not a ‘nine-day wonder’ – Finance Minister

He described the administration’s approach as effective and grounded in experience.

Speaking on the President’s performance so far in an interview on Adom FM’s morning show, Dwaso Nsem, Dr. Obeng noted that Mahama’s return to office has been marked by constructive stakeholder engagement and visible efforts across multiple sectors.

“I think because he has been president before, he has learned his lessons. Prior to his government, he held several key stakeholder meetings that are now bearing fruit. I think generally, he has done well,” Dr. Obeng said.

President Mahama had promised to fulfill 25 campaign pledges within his first 120 days, covering areas such as the economy, governance, education, national security, and the environment.

While not all have been completed, the administration maintains that implementation is on track.

Watch the video below:

READ ALSO:

• Mahama’s first 120 days a total letdown – Afenyo-Markin
• Declare assets or face consequences – Gender Minister

The Ghana Union of Traders’ Associations (GUTA) has vehemently rejected the recent utility tariff increase approved by the Public Utilities Regulatory Commission (PURC).

In a statement signed by the General Secretary, Alpha Shaban, GUTA described the tariff hike as unjustified and warned that it would place an unfair burden on consumers.

GUTA pointed to systemic inefficiencies, corruption, and mismanagement within the utility sector, accusing both the PURC and utility providers of failing to tackle wastage and corruption within the industry.

The PURC, on Friday, April 11, 2025, announced that electricity tariffs would rise by 14.75% and water tariffs by 4.02%, effective May 3.

The Commission attributed the increases to fluctuations in the exchange rate, rising domestic inflation, the cost of natural gas, and changes in the electricity generation mix.

However, the business community has raised several concerns, including inflated procurement costs that benefit individuals, ineffective bill collection from state institutions leading to debts passed on to consumers, rampant illegal connections, weak oversight by the PURC, and theft incidents such as the missing ECG containers scandal.

Emphasising the need for transparency, accountability, and better governance to protect consumers and stabilise the economy, GUTA is demanding stronger action against corruption.

ALSO READ:

• Electricity tariff goes up by 14.75%, water 4.02% 
• PURC justifies utility tariffs increment

The meeting, part of BoG’s broader stakeholder engagement following its recent Monetary Policy Committee (MPC) session, aimed to foster dialogue with the business sector amidst the country’s tightening monetary policy environment.

The Bank acknowledged the frustrations of traders over high borrowing costs and assured GUTA of its commitment to supporting a stable macroeconomic environment conducive to long-term growth.

BoG explained that both external and domestic inflationary pressures have driven its recent policy stance, which includes raising interest rates to anchor inflation expectations and protect purchasing power.

In its presentation to GUTA executives, the central bank defended the rate hike, saying it was necessary to curb inflation, which if left unchecked, would erode business confidence and economic stability.

While admitting the policy may pose short-term difficulties for businesses, the Bank maintained that it is vital for preserving long-term economic health.

For the first time since the adoption of its inflation-targeting regime, the MPC disclosed individual voting patterns of its members—an unprecedented move toward transparency and accountability in Ghana’s monetary policymaking.

The Bank believes this will build public confidence and help businesses make informed decisions.

Present at the meeting were key BoG officials, including Dr. Philip Abradu-Otoo, Director of Research; Bernard Otabil, Director of Communications; Ismail Adam, Acting Head of Banking Supervision; and Mr. Ernest Nii Sowah Ahulu, Officer-in-Charge of Financial Markets.

GUTA was represented by its President, Dr. Joseph Obeng; First Vice President, Clement Boateng; Second Vice President, Charles Gyan; and other executives of the association.

Speaking on the AM Show on JoyNews on Monday, March 24, he stressed the need for strategic policies to prevent incidents like the recent Adum market fire.

According to Mr. Appiah, a well-planned market system should include regular integrity assessments of electrical wiring, building structures, and accessibility to markets.

He emphasized that such measures would help identify and rectify potential hazards before disasters occur.

“I think, going forward, we should have a good plan for our marketplaces and structures. It should be a policy that, every year or so, there will be an integrity assessment of the wiring system, building structures, and market accessibility. If there are any anomalies, proactive corrections should be made to avoid some of these unfortunate incidents,” he stated.

Mr. Appiah also urged market players to embrace insurance policies as a safeguard against unforeseen disasters. He stressed that insurance companies should be more proactive in educating traders on the benefits of coverage and provide assurance that claims will be honored in times of need.

“The insurance companies should be interested in taking up such responsibilities. It all boils down to education. They need to give market traders the confidence that if they take an insurance policy and are affected by fire or any natural disaster, they will be supported,” he added.

Mr. Appiah further criticized city authorities for their failure to regulate markets before disasters occur. He argued that officials should focus on providing solutions rather than blaming traders after an incident.

“These traders did not occupy these spaces overnight; they have been there for years. We have city authorities, what have they done about it? When people are affected and are in distress, it is not the time to tell them they were in unauthorized spaces. It is the time to give them hope and a future,” he said.

He called on authorities to develop a proper business continuity plan for all market sectors, ensuring that affected traders are provided with alternative spaces to continue their businesses. He insisted that city planners must take responsibility by designating proper trading spaces and enforcing regulations before disasters occur.

“When you fail in your responsibility as a city planner and our market is destroyed by an inferno, you lose the moral right to tell us the affected area was unauthorized and therefore no help will be provided. That is unacceptable. Bring solutions to the people first, and then take up your responsibility to demarcate and regulate markets properly,” he said.

ALSO READ:

• Water was not an issue – Fire Service PRO on Adum incident [Audio]

• A/R Minister vs Fire Service: A blazing showdown amidst the flames at Adum

The Ghana Union of Traders Association (GUTA) has praised the government for the 2025 budget, describing it as a demonstration of good intentions and a positive step for the business community.

Speaking in an interview on Ekosii Sen on Asempa FM, GUTA President Dr. Joseph Obeng welcomed the removal of certain taxes, including the Covid-19 Levy, Betting Tax, and E-Levy, stating that it would ease the financial burden on traders.

“The fact that some taxes have been removed, especially the E-Levy and other transaction-related levies, is a relief to the business community. These taxes affected us directly, so their removal will put money back into people’s pockets,” he said.

Dr. Obeng, however, stressed the need for reforms in the Value Added Tax (VAT) system, which he believes will have a greater impact on businesses, particularly regarding duty payments and trading activities.

“We expected major changes in duty payments and VAT reforms. The government also promised a fixed tax or duty system at the ports, but we didn’t hear anything about that. Now, we are waiting to see the VAT reforms, as they will determine the real impact on businesses,” he added.

He also commended the government for allocating GH¢51.3 million as seed money for the establishment of the Women’s Development Bank, an initiative aimed at supporting female entrepreneurs.

GUTA’s reaction adds to the ongoing discussions on how the 2025 budget will shape Ghana’s business landscape, with traders keenly watching how the proposed reforms will unfold.

ALSO READ:

• 2025 budget a breath of fresh air but… – Franklin Cudjoe

• 2025 Budget holds the key to economic recovery – Finance Minister

The Association welcomed assurances from the new administration to streamline the tax system and cut down taxes, duties, and levies, which have long been a burden on the trading community.

“The assurance to ease the business climate through tax reforms is a step in the right direction,” GUTA President Dr. Joseph Obeng stated. “Our expectations are clear, and we believe this budget is an opportunity to address long-standing challenges traders face.”

GUTA has outlined key expectations from the budget, starting with the elimination of what it terms “nuisance taxes.” The Association believes scrapping redundant taxes will significantly relieve businesses, promote growth, and foster a more competitive market environment.

High on the list of demands is the restructuring of the Value Added Tax (VAT) to make it simpler, more affordable, and uniform across sectors. “A reformed VAT system will ease compliance burdens and make operations more predictable for businesses,” Dr. Obeng noted.

Addressing concerns over the volatility of the Ghana cedi, GUTA has proposed that the Bank of Ghana’s dollar rate—used to determine import duty payments—be fixed quarterly or bi-annually instead of the current weekly or biweekly adjustments.

“Frequent changes in the dollar rate destabilize business planning. Pegging it quarterly will bring much-needed stability,” the Association emphasized.

GUTA is also advocating for the introduction of unconditional tax amnesty programs to broaden the tax base. The Association believes such initiatives will encourage non-compliant businesses to enter the tax net and allow companies with irregularities to settle obligations without harsh penalties.

“This is not just about revenue mobilization—it’s about giving businesses breathing space to recover and grow,” Dr. Obeng explained.

On compliance, GUTA is urging the government to adopt effective education, monitoring, and enforcement strategies to ensure the fair application of tax laws.

Traders are also looking forward to the implementation of a fixed duty system for spare parts, a promise highlighted in the governing party’s manifesto. GUTA believes this pilot project could eventually be extended to cover all imported commodities, further stabilizing import costs.

Economic stability remains a top priority for the trading community. GUTA is calling for policies that will ensure the stability of the local currency, reduce inflation and interest rates, and improve key economic indicators.

“A stable economic environment is crucial for business predictability and growth,” Dr. Obeng stressed.

Beyond revenue measures, the Association is urging the government to scrutinize and evaluate its expenditures to prevent waste and mismanagement of public funds.

“We pay taxes to see meaningful development. Value for money should be a guiding principle in public spending,” Dr. Obeng asserted.

ALSO READ:

• Finance Minister to present first budget on this date

• AGI President cautions against untargeted expenditure cuts in 2025 budget

The Union emphasized that having a government that pays close attention to the business sector is crucial for fostering collaboration and finding solutions to drive the nation’s economic development.

“We pray to the Almighty God to grant him (John Mahama) good health, long life, increase him in knowledge and wisdom, as well as guard and guide him in his performance of duty as President,” the Union said in a statement.

It assured President John Mahama of its readiness to work closely with the government to achieve the set objectives for national development.

“His historic return to the Presidency has not been a surprise at all because, given his deep understanding of politics, profound experience in leadership, great personal charisma, excellent communication skills, and other good leadership qualities, we do not doubt his capability,” the statement read.

“We, members of the trading community, the business community for that matter, are partners to the state,” it added.

ALSO READ:

• GUTA begs banks to reschedule loan payments for traders after Kantamanto fire

• Ghana Shippers’ Authority responds to GUTA’s concerns on new GSA law

The First Vice Chairman of GUTA, Clement Boateng made the appeal while speaking to journalists after they donated GH₵40,000 to support the reconstruction of the market.

“I will take this opportunity to appeal to the banks because I know that there are a lot of people here who have taken some facilities from the bank.

“So, I want to make an appeal to all the financial institutions that our members have taken facility from, to please reschedule their facility arrangement, so that the time that they are supposed to repay the facility will be extended for them to have some bit of respite,” he said.

Mr. Boateng also called on the District, Metropolitan and Municipal Assemblies(MMDAs) to allocate some of the fees collected from traders for insurance schemes.

He emphasised that such measures serve as a safety net during unforeseen crises.

“Sit down with GUTA and consider an amount that we are paying for the business operating permit, that amount should be set aside to sign on to an insurance package, so that in times like this, our people will not be found wanting,” he added.

Furthermore, the Director of Communications of GUTA, Joseph Paddy urged a collaboration between government and the private sector for a well-structured market system to enhance trading activities nationwide.

He stressed that government’s involvement is essential in creating resilient and sustainable trading environments.

“Over some period of years now, we have not had a well-structured market in the country. Almost all the market we have are made by the indigenes.

“Only very few local markets. This is the time for government to collaborate with the private sector, so that we can build more well-structured markets for Ghanaians to trade,” he noted.

ALSO READ:

• Kantamanto traders disappointed in Gbese stool

• Mahama to prioritize market infrastructure following Kantamanto blaze – Spokesperson

Ajumako GUTA Chairman, Albert Opare Essel, expressed concerns about the prolonged renovation, reminding of the negative impact on traders’ businesses due to their relocation.

He also called on the government to ensure that the allocation of newly renovated stalls prioritizes original occupants over new applicants, a situation he described as common in such projects.

Essel further urged the national GUTA President, Dr. Joseph Obeng, to intervene and support the traders’ plea for fairness in stall allocation.

In addition, Central Regional GUTA Chairman, Paul Kofi McCarthy, used the occasion to call on financial institutions to provide affordable access to capital for traders.

He lamented the burden of high interest rates and urged the government to take measures to reduce them.

McCarthy assured financial institutions that supporting GUTA members in the region would result in prompt loan repayments and a mutually beneficial relationship.

The appeals were made during the inauguration of the Ajumako GUTA branch, where both leaders emphasized the importance of addressing the challenges facing traders in the district.

On Saturday, September 28, the Public Utilities Regulatory Commission (PURC) announced a 3.02% rise in electricity tariffs and a 1.86% increase in water tariffs for the third quarter of 2024, effective from October 1. The commission attributed the adjustment to factors such as fluctuations in the exchange rate, inflation, and gas prices.

Joseph Paddy, Public Relations Officer for GUTA, expressed frustration over the decision, stating that it will exacerbate the already challenging living conditions for Ghanaians.

“The new tariffs are not justifiable. The increase is linked to rising gas prices, interest rates, and exchange rate instability. But who is responsible for the exchange rate going up? This is exactly what the fiscal committee has been warning about – instability in the system.

“They need to reconsider this decision, or it will make life much harder for Ghanaians. The cost of living is already very high, and this increase at such a critical time will only worsen the situation. Even the timing is problematic.”

Source: Adomonline.com

READ ALSO:

• Aburi Girls’ headmistress dies while on official duty
• 2024 election: Akufo-Addo set to begin campaign tour
• Taxes are suffocating businesses – GNCCI CEO calls for urgent tax reforms

According to the union, a holistic and collective approach will be the game changer to tackle the canker rather than resorting to demonstrations and total economic shut down by the Trades Union Congress (TUC)

Civil Society, academia, Trade Unions, religious organisations have all joined forces to put pressure on government to immediately ban all forms of small mining as a measure of eliminating galamsey.

The various groups contend, the irresponsible mining is not only an environmental issue but also a matter of injustice and against the right to clean environment and good health for present and future generations.

“We therefore urge the Government of Ghana to lead the charge in holding perpetrators accountable and ensuring that the damages caused to our natural resources are reversed especially when Ghana has signed onto international protocols and conventions that enjoins us to promote and ensure environmental protection”, GUTA President Dr. Joseph Obeng said.

He is of the view that even though the fight against galamsey is a long term initiative, government should be emboldened by the outcry of the public and intervene with all the seriousness it deserves.

“This is a long-term thing to fight, we cannot just give such a short ultimatum to government, it is not fair. I think the President should also take advantage of the public outcry as support to take a decisive decision on this. The whole country is behind him to fight the menace”.

He further advised civil society organizations not to politicize the matter, bearing in mind that the issue at hand goes beyond politics.

“Civil society and organizations should be clear in their minds this is not politics. We should know that this is a menace that must be addressed devoid of politics so we have a sustained positive result. That’s why I won’t support call for demonstrations”.

ALSO READ:

• MoMo agents threaten strike over ‘galamsey’

• Galamsey: Current effort doesn’t match the scale of crisis – Kenneth Ashigbey

A key issue highlighted by GUTA is the registration of shippers and shipping service providers, which GUTA strongly opposes.

In response, the GSA clarified that registration should not be confused with licensing, as GUTA has interpreted.

“Registration simply means registration and should not be misconstrued as a licensing regime. This has been clearly explained and discussed with stakeholders, including GUTA. The registration of shippers is not a new concept; it has always been part of Ghana’s laws: Section 1 of L.I. 1347 (1987) and Section 2 of L.I. 2190 (2012) mandated the registration of shippers by the GSA,” the Authority stated.

Below is the full response of GSA to GUTA

RE: TRADERS WOULD NOT ACCEPT ANY IMPORT LICENSING OR PERMIT REGIME

Ghana Shippers’ Authority (GSA) has received news of some concerns raised by the Ghana Union of Traders Association (GUTA) with respect to sections of the recently passed Ghana Shippers’ Authority law, which they perceive may impact the commercial business sector adversely. As stated in paragraph 6 of the GUTA Statement, GSA committed to continuing the discussions it initiated from Tuesday 30th July 2024 with stakeholders including GUTA, on the law, soon as it was passed by Parliament on Monday 29th July 2024, to ensure that the Legislative Instrument (L.I.) which will operationalize the law will take cognizance of any concerns that may jeopardize its enabling intent; and GSA hereby reaffirms its commitment to doing so. However, for the sake of educating the general public on the specific issues raised by GUTA, the GSA explains as follows:

1.GUTA: “The issue of registration of shippers and shipping service providers were not discussed with us to make our input as stakeholders in the shipping industry.”

GSA response: a) Registration only means registration, and by no stretch of imagination should it be construed as a licensing regime. This has been explained and discussed with the stakeholders including GUTA. Registration of shippers is not a new introduction; it has always been in the laws of Ghana: Section 1 of L.I. 1347 (1987) and then Section 2 of L.I. 2190 (2012) provided for registration of shippers by the GSA.

2. GUTA: Submission of notice of shipment was also not discussed with stakeholders for their input

GSA response: a) Submission of notice of shipment has also always been in our laws: Section 8 of L.I. 1347 (1987), and then in Section 12 of L.I. 2190 (2012) provide for Shipment Notification by shippers. We also believe that where goods are legally shipped, submission of Shipment notification must not evoke any fear.

3. GUTA: The final draft was issued to stakeholders only after Parliament had approved the Bill.

GSA response:

a) This statement suggests a lack of understanding of the parliamentary process on the passage of Bills, and unfortunately implies an attempt to overreach Parliament in the performance of its constitutional duty. We would like to assure the business community and the public that, stakeholders, including GUTA were amply engaged; and GSA has been in continuous engagement with stakeholders since the law was passed as stated above in the preamble to this statement. Our doors remain open to such collaborative approach to dealing with any issues that affect the mutual good of Ghanaians.

4. GUTA: Issues raised on the suspension of registration, renewal of certificate of registration, cancellation of registration and outright rejection, which are only related to permits and licenses to operate as importers have not been resolved with stakeholders. GSA response: a) Again, we state that the concerns raised in this paragraph are a continuation of the issues raised under paragraph 1 of the GUTA Statement. We wish to reiterate that, registration is necessary for identification, and speed in the processing of shipments, and should therefore not be equated to a licensing regime. It is in the absolute interest of shippers, as time is of utmost essence in their operations.

5. GUTA: The Advance Shipment Information System that had been resisted and withdrawn by the Government in the past is now being reintroduced in the Act. Our position on that has not changed. Moreover, this information sought by the GSA is of no relevance to their operation.

GSA response:

a) The Advance Shipment Notification (ASN) is not new; it is contained in L.I. 2190 (2012), which is currently in force. Under the new law also, it will be operationalized through an L.I., and GSA is currently in ongoing consultations with stakeholders to pool inputs for the yet to be passed L.I. b) We further affirm that, the intention for that ASN is to help shippers in their pre-arrival clearance processes at the ports, to enable the speed required to forestall avoidable costs such as demurrage.

6. GUTA: “For these reasons, the GSA had agreed to our concerns and promised that as the Act has already been passed by Parliament, they would use Legislative Instruments (LIs) to correct any defect or anomaly in the operationalization of the Act. However, our consultations suggest that L.Is cannot override an Act, hence our call on the President of the Republic no to assent to the Act until all issues raised are resolved.”

 GSA response:

a) We hereby state that, the assurances we gave on the concerns shared by stakeholders so far have been unfortunately misunderstood. Once again, we reiterate that, the new L.I which will operationalize the law will provide better clarity on the provisions that seem inhibitive to the carrying on of profitable commercial shipping business in Ghana. Every effort is being made to ensure that, Ghana remains well aligned to global standards of shipping and is thus a competitive route for international trade.

b) GSA further reiterates its stance, that it remains open to constructive collaboration and engagement with all stakeholders and interested parties within the commercial shipping sector, as we continue to confer on shaping the sector into a fit-for-purpose engine of socio-economic growth for the common good of traders as well as the general citizenry of Ghana. To the general public, GSA hereby assures that the law is an enabler rather than an inhibitor to profitable commercial shipping business, as has rightly been espoused by GUTA since it was passed. GSA therefore reaffirms its commitment to ensuring that this overarching goal of the law is not compromised, and appeals to all stakeholders to remain at the table of discussion, as inputs into the expected L.I. are pooled for the attention of the relevant law drafters and makers.

The Association said the law would empower the GSA to exercise control of the port and have the power to approve or disapprove import charges that affect the general cost of doing business in the country.

Speaking at a stakeholder engagement organised by the GSA in Accra, Dr Joseph Obeng, President of GUTA, said the regulation of charges would give respite to businesses and ensure their growth.

“We have been propagating all this while that we revive the laws of Shippers Authority so that they can have proper mandate to control.

“The cost of doing business in this country is just too high and this Act seeks to empower Ghana Shippers Authority to do just that for us to make sure that some controls are brought to bear so that they can approve or disapprove; so that we can have the respite to do our business and grow,” he said.

The stakeholder engagement sought input for setting up a Legislative Instrument (LI) that would guide the implementation of the new law.

The trade associations that were engaged include Association of Ghana Industries (AGI), Ghana National Chamber of Commerce and Industry (GNCCI) and the GUTA.

Dr. Obeng encouraged other stakeholders, including clearing agents, to also get involved in the GSA’s stakeholder engagements so that all of them would get their concerns addressed in the LI and ensure benefits for all.

Parliament on Monday July 29, 2024, passed the Ghana Shippers’ Authority Bill 2024 into Law after its successful third reading on the floor of the House.

The new law which amends its 50 years’ old establishment law, NRCD 254 (1974), will regulate commercial activities of shippers, and primarily address the issue of unfair and excessive charges that burden traders who use Ghana’s sea and airports, as well as land borders to ply their international trade.

It seeks to ensure transparency, accountability, as well as to increase national revenue and to make Ghana a preferred destination for her landlocked neighbours, Burkina Faso, Mali, and Niger.

Source; GNA

On Monday, July 29, 2024, Parliament passed the Ghana Shippers’ Authority Bill, 2024, into law following its third reading in the House.

The legislation is designed to regulate the commercial activities of shippers, with a focus on curbing unfair and excessive charges that affect traders using Ghana’s seaports, airports, and land borders for international trade.

However, in a statement dated August 21 and signed by its president, Dr. Joseph Obeng, GUTA raised alarms over the lack of consultation with relevant stakeholders before the bill’s passage.

“The Business Community appeals to the President not to assent to the Ghana Shippers’ Authority Act, 2024, until critical issues raised by stakeholders are resolved,” the statement urged.

Parliament argues that the law will enhance transparency in port fee determination and ensure accountability in the legal movement of international trade cargo across Ghana’s borders.

It is also expected to position Ghana as a preferred transit trade route for its landlocked neighbours, Burkina Faso, Mali, and Niger while boosting the sector’s contribution to national revenue.

Despite these benefits, GUTA remains firm that President Akufo-Addo should hold off on signing the bill until all stakeholder concerns are adequately addressed.

Find the full statement below:

The Business Community wishes to appeal to the President of the Republic not to assent to the Ghana Shippers Authority Act, 2024 until some critical issues raised on the Act by stakeholders are resolved.

They are as follows:

1. The issue of registration of shippers and shipping service providers were not discussed with us to make our input as stakeholders in the shipping industry.

2. Submission of notice of shipment was also not discussed with stakeholders for their input.

3. The final draft was issued to stakeholders only after Parliament had approved the Bill.

4. Issues raised on the suspension of registration, renewal of certificate of registration, cancellation of registration and outright rejection, which are only related to permits and licenses to operate as importers have not been resolved with stakeholders.

5. The Advance Shipment Information System that had been resisted and withdrawn by the Government in the past is now being reintroduced in the Act. Our position on that has not changed. Moreover, this information sought by the GSA is of no relevance to their operation.

6. For these reasons, the Ghana Shippers Authority had agreed to our concerns and promised that as the Act has already been passed by Parliament, they would use Legislative Instruments (LIs) to correct any defect or anomaly in the operationalization of the Act. However, our consultations suggest that LIs cannot override an Act, hence our call on the President of the Republic not to assent to the Act until all issues raised are resolved.

Source: Adomonline

READ ALSO:

• NPA engaged in ‘unfortunate and deliberate’ attempts to tarnish reputation of LPG refill stations – Stakeholders
• NPA revokes licenses of 13 OMCs over debts owed several industry regulators
• Dangote refinery set to start gasoline output

This move is aimed at ensuring that the interests of its members are protected and that political parties honour their commitments if elected.

Speaking on Joy News’ PM Express, GUTA President Dr Joseph Obeng explained that, unlike previous elections, the association demanded to have a say in the formulation of party manifestos.

“In the past, they would formulate their own manifesto, and at the end of the campaign, they’d come and show it to us. But this election, we demanded that we want to factor our input into their manifesto because they are all potential governments,” Dr Obeng stated.

He noted the importance of this agreement, noting that GUTA wants to ensure it is not taken for granted.

The Association plans to hold future governments accountable to the terms of the MoU.

“We are very serious about this so that we are not taken for granted and can call the government back to order when it fails to fulfil its end of the bargain,” he added.

GUTA has been vocal about the economic challenges faced by its members, particularly the depreciation of the cedi and rising freight charges from Asia, which have made the cost of doing business increasingly unbearable.

The Association has urged government to sustain the economic gains achieved since returning to the IMF, as these are crucial for the business community.

Dr Obeng also expressed the need for greater accountability, stating, “First, we were just building the manifesto. Then after you finish, we demand that let’s put a signature somewhere so that we can refer to it. I think it’s fair because we have to go beyond some of these red territories and then demand proper accountability.”

GUTA’s decision to secure formal agreements with political parties highlights its commitment to safeguarding the interests of traders and ensuring that their voices are heard in the policymaking process.

The President, Dr Joseph Obeng has lauded the proposed policy as the solution for today’s problems in the business community.

Dr Bawumia during the NPP manifesto launch assured businesses of tax amnesty in 2025 if he wins the December 2024 presidential elections.

According to him, the country’s current tax structure is not fit for purpose, and he therefore wants the tax system to change.

In an interview on Adom FM’s morning show Dwaso Nsem Tuesday, Dr Obeng stated the policy if implemented will ease the tax burden on businesses and reduce the evasion of taxes.

“The manifesto is solution for today’s problems since it seeks to reform our tax systems which is the biggest bane of the business community.

“If taxes are cumbersome and outrageous, people always find means to evade. There are a lot of tax defaulters and if they should pay, they will be out of business and have no money for recapitalisation so the amnesty will go a long way to help us,” he said.

Dr Obeng expressed optimism that the amnesty would encourage more businesses to come forward and fulfil their tax obligations.

Source: Gertrude Otchere

ALSO READ:

• GUTA welcomes Bawumia’s flat tax policy but…

• NPP Manifesto: Bawumia lacks understanding of flat rate policy – Importers Association

According to him, it will ease the tax burden on businesses and reduce the evasion of taxes.

This comes after the NPP flagbearer, Dr Mahamudu Bawumia assured businesses of tax amnesty in 2025 if he wins the December 2024 presidential elections.

According to him, the country’s current tax structure is not fit for purpose, and he therefore wants the tax system to change.

“We will accelerate Ghana’s growth into a world-class digital economy and make Ghana the digital hub of Africa. We will do this through policies, competitive incentives and investments. We will invest in developing local talent and tech start-ups and abolish E-Levy.

“[We’ll] Implement wide-ranging tax reform, and offer a one-time tax amnesty to all Ghanaians and corporate entities through tax amnesty from the payment of taxes from the previous years. The waiving of interest and penalties for failures to file taxes in previous years. This will enable everyone to start their tax journey afresh.

Speaking on JoyNews’ AM Show on August 19, Mr Kubi noted that the tax amnesty could encourage more businesses to come forward and fulfil their tax obligations.

“If you are going to give businesses tax amnesty, it is going to open the floodgates for every business to come on board and pay taxes that will reduce the tax burden that has been on the few identified businesses in the country.”

M Kubi added that the existing VAT system has created disparities and undermined the principle of fairness in taxation. He argued that the current structure leads to tax avoidance and evasion due to its complexity.

“A lot of people are avoiding and evading taxes because of the structure and the non-compelling compliance of the current taxes. So, if it’s going to harmonise the tax system to ensure flat rate it’s good news for us,” he said.

Source: Myjoyonline

ALSO READ:

Firefighters avert fuel tanker disaster at Odorkor [Photos]

NPP promises to establish Travel Protocol Service for creatives

Coalition of Concerned Nzema People threaten legal action over controversial Petroleum…

According to him, the taxes are excessively high compelling traders to evade them by any means possible.

This comment comes after JoyNews’ investigations uncovered how customs officials take bribes to allow traders to transport smuggled goods from neighbouring countries to the country’s local markets.

These officials take bribes ranging from ¢20 to ¢200 to allow these traders who have evaded paying taxes on their goods to get off the hook.

Speaking on Joy FM’s Super Morning Show on July 29, Mr Obeng described the customs officials who aid the traders clear their goods as “angels.”

“A tax system that is so extortionately high and` very unbearable and this is the problem. Sometimes the customs officer that we say is taking a bribe, the word bribe is not bribe for the trader. It’s a favour that the customs officer has given us (the trader) because we were eventually able to clear our goods. Without that, we couldn’t even have cleared the goods,” he said.

Mr Obeng stated that, there is a need for affordable taxes and an overhaul of the system to create an environment where customs officials can work with integrity.

“The trader that goes to the poor customs officer because of our inability to pay our taxes makes the customs officer obliged to take something so that they can take the goods out, make him an angel for us and this is true.”

“The clearing agent can do the same and the trader can do the same without even pointing fingers at anyone. Even those people telling us to pay the legitimate taxes and duties and all that, they face the same when they are clearing their goods, they face the same thing and use the same clearing agents.”

Meanwhile, Ranking Member on the Trade and Industry Committee of Parliament and MP for Bole Bamboi, Yusif Sulemana, believes the report has revealed deep-seated corruption in the country.

He stated that when Ghanaians see that those responsible for preventing corruption are themselves deeply involved in it, it emboldens them and diminishes their fear of engaging in corrupt practices.

“That is exactly what we are seeing. We have customs officials who will go that low to take 200 cedis, and 400 cedis to aid traders to evade tax, it tells you that our country is sick. It tells you that there is a need for a national conversation with respect to how we are going to fight corruption. If we don’t do that, it would be difficult to stop these kinds of things happening in the country,” he said.

He urged the government to sustain the economic gains as it is crucial for the business community.

Dr Obeng mentioned that GUTA has contributed to small and medium-sized enterprises’ (SMEs) growth and offered opportunities by providing funds as a mitigation factor.

He said these funds, when directed to targeted areas, have a positive impact on the economy.

In his mid-year budget review presentation to Parliament on July 23, the Finance Minister reported that the economy is showing robust recovery, with a 4.7% growth in the first quarter of 2024.

Dr Adam attributed this positive performance to effective policy measures, robust economic management, and the unwavering spirit of the Ghanaian people.

Speaking on JoyNews’ AM show, the GUTA President said, “We think that overall, if we look at most of the figures, even with the debt restructuring and all that, we have come this far, and it can be said that it is inspiring some hope and confidence into the system.”.

The GUTA president noted that the government must make every effort to sustain this growth, strengthen the local currency, and reduce inflation further, so that businesses can thrive again.

The Union expressed concerns over the tax’s impact on the business sector and the overall economy.

GUTA, in a press statement noted that the tax comes at a challenging time marked by the instability of the cedi, increasing utility tariffs, and existing financial pressures on businesses.

The Union questioned the economic reasoning behind introducing such a tax when the government is promoting an industrialization agenda aimed at fostering local production and reducing imports.

According to GUTA, the additional tax burden could jeopardize the viability of plastic manufacturing businesses already grappling with high operational costs.

They argue that the policy contradicts efforts to support local manufacturing and could lead to the collapse of businesses struggling under the current tax regime.

GUTA urged the government to reconsider and halt the implementation of the excise tax, reminding the need for policies that support rather than hinder local businesses.

The Union stressed that the business community is already facing significant challenges and cannot endure further financial burdens without risking widespread economic disruption.

Charles Kusi Appiah Kubi, who was speaking on Joy FM’s Super Morning Show, shed light on the severe financial challenges confronting the business community.

According to him, the rapid depreciation of the Cedi has been a significant factor contributing to this capital depletion.

“Within six months, businesses have lost over 56% of their working capital without doing any other business. It is not that they ran into a bad deal, but it is because of the current economic situation.

“So the first thing that affects us when the Cedi depreciates is capital depletion,” he said on Wednesday.

He further noted that the weakening currency also drives up the Cost, Insurance, and Freight (CIF) values at the ports.

These are all costs, he believed, would drive up the price of the product or commodity that the businesses are trading in.

“As businesses, there is a limit to the costs we can absorb. Beyond that limit, it must be passed to the consumer,”he noted.

However, with the local market also struggling with skyrocketing inflation, Mr Kubi noted the economy has become stagnant since consumers are cutting back on spending and businesses are experiencing a sharp decline in sales.

“The moment inflation goes that high, the purchasing power of the consumer also starts diminishing. So as a business, we’d pass on the cost, but the consumer doesn’t have the purchasing power to absorb the extra cost so they are not buying. So right now there is economic stagnation.”

He noted that this situation has left a financial strain extending to businesses’ ability to meet their financial obligations.

“Right now there is economic stagnation. This is when people are no longer buying, and as a business, when you are not making sales, how do we then retire our loans?” he questioned.

ALSO READ:

Investigate demolished Mac Tontoh property – Family

Patients stranded at Assin Fosu polyclinic as nurses embark on sit-down…

Dr. Joseph Obeng, President of GUTA, expressed disappointment over recent comments by Dr. Amoah, who blamed GUTA members for the ongoing decline of the cedi.

Dr. Amoah, during an interview on Accra-based Onua FM, accused some GUTA members of using black market currency exchange services, which he claimed was contributing to the Cedi’s instability against the US dollar.

He told Ghanaweb that the Deputy Minister’s comments were “misguided and unfortunate, and he should avoid making statements that could provoke the trading community.”

“Many traders resort to forex bureaus or black market currency exchange services to purchase their goods and this is by choice.”

Dr. Obeng urged the Deputy Finance Minister to collaborate with his sector minister, Dr. Amin Adam, to develop a sustainable solution for the cedi’s depreciation against major trading currencies.

He emphasised the need for constructive dialogue and cooperation to address the economic challenges facing the nation.

The GUTA president lamented that the business community is already at its wit’s ends because of high cost of doing business due to “high taxes, duties, and the economic downturn.”

“My advice is for the deputy minister to help find lasting solutions to this ongoing problem…The government should also implement a policy to tackle the depreciation issue once and for all and provide clarity on black market currency exchange services and forex bureaus,” he said.

ALSO READ:

I have not been given slots to recruit into security agencies…

I voted for you but… – Lecturer tells Akufo-Addo [Listen]

Minister justifies why week-old company was awarded 5G contract

GUTA President, Dr Joseph Obeng proposed this on Asempa FM Ekosii Sen programme Friday.

He indicated that, as a businessman, only product he is familiar with under the IDIF is Ekumfi juice.

Mr. Obeng said the business community is not familiar with the products being manufactured despite the advocacy for the patronage of made-in-Ghana goods.

In this regard, Dr Obeng is certain a fair will be a platform to showcase indigenous products from the various factories under the IDIF initiative.

“We should be able to adopt this innovation because traders are not invited for the commissioning of these factories, so we don’t even know about the products.

“So we will continue to import even if we have the products in Ghana because we don’t know about them. I for instance, Ekumfi Juice is the only product I know,” he bemoaned.

Dr Obeng noted that, the fair will also serve as a platform for prospective investors to engage and assist the government’s industrialisation programme.

Additionally, he urged the government to focus on the production of raw materials for the factories constructed.

Background of IDIF

President Nana Akufo-Addo instituted the 1D1F programme to stimulate industrialisation, boost local production, and enhance the overall economic landscape of the country.

Delivering the State of the Nation Address (SONA) in February 2024, Akufo-Addo said some 170,000 jobs have been created by companies under the programme.

He said 321 projects have been developed, comprising 211 new medium to large-scale factories and support for 110 existing companies to expand production.

ALSO READ:

• 1D1F: Check out full list of $335m tax waiver 42 beneficiary companies

• 1D1F needs thorough investigation – Prof Gatsi

Speaking on PM Express on JoyNews, Dr Joseph Obeng said the current regulatory framework inadvertently drives more traders to engage with forex bureaus and the black market rather than mainstream banks.

He noted that “one thing that the Bank of Ghana is doing is that they do not recognise that we trade more with the forex bureaus and the black market than the mainstream banks.

“Because you know, the fear factor there is the documentation, the requirement, stringent documentation. They have to relax their stringent documentation.”

“If you make a stringent documentation requirement, then people do not transact through the banks. For the Bank of Ghana what you need is a bill of lading and then your transactional value, that should be enough for you. People will not be panicked about whatever the accounting aspect of all that.”

Dr Obeng further argued that the core mandate of the central bank dealing with businesses when it comes to foreign exchange should not be to do the accounting for every transaction in detail.

“Bring our document and all that is for GRA to do that. And they do post-clearance audits, and all that, all the time. Yours is to track the transactions that we do,” Dr. Obeng stated.

The current regulatory environment has led to a significant volume of trade being conducted in the black market rather than through formal banking channels.

“So Bank of Ghana is making a very serious mistake to the extent that people, when they get money, instead of pushing it through the banks, they just go and give it to the black market,” he said.

Dr Obeng warned that the current situation causes the volume of trade to be centred on the black market more than the banking sector, undermining the effectiveness of the Bank of Ghana’s monetary policies.

“if you mention the bank rate is GH¢14.3, nobody is even excited because they won’t transact through there (banks). But then there are the black market people who are detecting this pace, and we should know and observe this,” Dr. Obeng concluded.

This comes after the Ghana cedi weakened further against the US dollar and other major foreign currencies as corporate demand soared in the past month.

But JoyBusiness reports that depreciation pressures on the cedi have slowed down as a result of improved foreign exchange (FX) liquidity,

This, the report, attributed to a significant intervention by the Bank of Ghana on the market last week, providing about $59 million on the spot market and auctioning $20 million to the Bulk Oil Distribution Companies.

The move by the central bank marked the most significant support provided in a week since the beginning of 2024.

See what happened when Diana Hamilton bumped into Bawumia [Watch]

The Ghana Union of Traders Association (GUTA) has raised alarm over the current depreciation of the cedi and rising freight charges, stating that it is creating significant challenges for the business community, particularly the trading sector.

The association expresses deep frustration, noting that the situation is rendering the cost of doing business unbearable and leading to a surge in prices of goods and services for consumers.

GUTA highlights that the depreciation of the cedi is driving up the cost of goods, making it difficult for businesses to maintain affordable prices.

This inflationary pressure, coupled with reduced purchasing power for consumers, is resulting in lower turnover for businesses.

In a press statement, it stated that businesses are struggling to repay loans to banks due to the financial strain caused by the depreciating cedi.

Furthermore, rising freight charges, combined with customs duties benchmarked in dollars at the port, are crippling trade and commerce, causing hardships for both businesses and consumers.

GUTA indicated that he volatile economic environment has heightened uncertainty for businesses, making it challenging to forecast and plan effectively.

Moreover, the depreciation of the cedi has led to increased costs for credit purchases, making it difficult for traders to repay their overseas suppliers and resulting in increased indebtedness.

In response to these challenges, GUTA called on the government to urgently address the situation before it escalates further.

The association expressed its readiness to collaborate with the government and other stakeholders to find viable solutions to mitigate the impact of the depreciating cedi and rising freight charges on businesses and the economy as a whole.

The short-to-medium term measure, Dr Joseph Obeng, President, GUTA, said would ensure a more reliable and affordable energy mix to boost the growth of businesses, spur trade and augment Ghana’s economic stability drive.

Dr Obeng said this in an interview with the Ghana News Agency on Wednesday, April 24, in Accra, and called for the integration of solar energy into the national grid.

He said not doing so could worsen the erratic power supply, with far-reaching consequences – crippling of businesses, increasing noise pollution, and risk causing fire outbreaks in markets due to congestion amid high use of generators.

He said the call had become necessary because the power outages were becoming persistent with no clear information on what the government was doing, or any indication of the challenge being solved anytime soon.

“Our over dependence on hydro and thermal is getting embarrassing, especially when we have alternative energy sources that abounds and all that we need is a clear policy to solve that,” Dr Obeng said.

“It [solar] is capital intensive and expensive at the initial stage, but if there’s a clear policy that your power will be credited to you, almost every household will have power and offload it to the national grid,” he said.

He, therefore, encouraged the government to provide a policy support system “… and make sure that they compensate people who are ready to provide these alternative sources and put it on the national grid”.

He indicated that while some businesses had planned to procure generators, others had already done so to ensure productivity, but that would be an additional cost that consumers would have to pay.

“People are using generators, but the noise alone does not create a good ambience for trading activities to go on. There’s also discomfort because we must trade under unbearable heat, and this isn’t what we need,” the Trade leader said.

He also stated that the recent power outage was negatively affecting digital trade, explaining that “each time the lights go off, it slows business because some of the platforms become inaccessible.”

“Already, businesses are in a state of stagnation because of the effects of the previous years’ economic crisis, and it’s important that we don’t add this [power outages] to our problems. So, the earlier they find a solution to this, the better,” Dr Obeng said.

The recent power outages have been attributed largely to lack of funding as there is a US$1.9 billion financing gap, with the Electricity Company of Ghana (ECG) also collecting less revenue for value chain players’ operations.

According to the Public Utilities Regulatory Commission (PURC), ECG collects an average of GH₵850 million on a monthly basis, instead of the GH₵1.9 billion monthly revenue required.

During an interaction with GUTA members in Accra, he reiterated his plans to introduce a flat-rate tax system and grant tax amnesty to all businesses and individuals in 2025.

He pledged to benchmark Ghana’s port duties with those of Lome Port, Togo, ensuring parity or lower tariffs to deter smuggling and diverting goods to neighbouring ports.

Furthermore, the NPP flagbearer outlined his intention to impose specific duties at the port on 20-footer and 40-footer containers to enhance pricing predictability of imported goods.

Dr Bawumia also highlighted initiatives to stabilise the local currency through the Bank of Ghana’s gold-purchasing policy, ultimately leading to stable exchange rates.

“My government will prioritise the interests of businesses, aiming to make Ghana one of the most business-friendly economies globally,” he stated.

He announced plans to introduce a Credit Scoring System for entrepreneurs and individuals by June, reducing interest rates for those with good loan payment records.

“Under my administration, we will reduce government borrowing by moving government’s expenditures to the private sector.”

Also, Dr Bawumia pledged to focus on solar power generation to produce 2,000 megawatts of solar energy within the first four years of his presidency.

“I am encouraged by GUTA’s positive reaction to my policy proposals, especially the tax amnesty and flat tax and container rates proposals, aimed at creating a friendly environment for businesses to thrive,” he said.

Earlier, Dr Joseph Obeng, President of GUTA, outlined challenges faced by Ghanaian entrepreneurs, including the high costs of doing business.

Members of the Association also engaged in discussions, seeking clarifications and making suggestions.

READ ALSO:

• 8 Police officers injured in Nandom accident [Photos]

• Fear and panic hits KNUST as another student passes on

• Commercial activities suspended in Sunyani as scores bid farewell to late chief

GUTA has said the policy if implemented will help stabilise and reduce the cost of doing business in the country.

GUTA President, Dr. Joseph Obeng made this known during a meeting with Dr Bawumia on Friday as part of his engagement with key stakeholders in the business community.

However, Dr Obeng suggested it would be better if Dr Bawumia explained the policy properly for the business community to understand it better.

On his part, Dr Bawumia said businesses are the backbone of every economy thus if they flourish, it will bring prosperity.

This, he said, is the reason why his first goal as President will be to revive businesses.

Dr Bawumia at an engagement with the Ghana National Chamber of Commerce and Industry (GNCCI) assured businesses of tax amnesty in 2025 if he wins the December 2024 presidential elections.

According to him, the country’s current tax structure is not fit for purpose, hence the need for a change in the tax system to change.

Dr. Bawumis argues it’s about time Ghana becomes competitive like other countries like Estonia.

ALSO READ:

• Bawumia has moved from ‘economic Wizkid’ to a fiasco, says Fifi Kwetey

• We are going to grant tax amnesty to all businesses in 2025 – Bawumia

According to him, Ghana is no longer competitive in the trading industry due to the numerous taxes placed on production and importation.

In an interview on Asempa FM’s Ekosii Sen programme on Monday, the GUTA President questioned why government is still introducing new taxes when it promised Ghanaians a “taxation to production” economy.

Speaking on the proposed implementation of Value Added Tax (VAT) on electricity charges, Mr. Obeng said the introduction of these additional costs will burden businesses.

He indicated that, when the purchasing power of their consumers goes down, it affects operations.

“The money that the customer will use to buy something, he will now use it to buy electricity. We also use electricity in our businesses, and now transportation is another problem. If we are indeed turning the corner as the government is saying, why bring something that will impede growth?

“The cost of doing business has made us very unproductive. Some companies produce here in Ghana but they rather import from other countries to sell. We are no longer competitive in the sub-region because everything is expensive. Taxes keep piling and thats the main reason we are uncompetitive,” he said.

Mr Obeng further urged government to review the new taxes.

READ ALSO:

• Gory accident on Accra-Suhum road [Video]

• 25 arrested after residents clash with police in Kwawu Bepong

• National Ambulance Service Entity Tender Committee inaugurated

The association argues that these measures will have severe adverse economic impacts on businesses operating within the country.

In a press release issued on February 4, 2023, GUTA expressed concern about the potentially detrimental consequences of these additional costs, stating that they will only escalate the already high cost of doing business in Ghana.

“The proposed VAT on electricity charges will directly impact businesses, particularly those heavily reliant on electricity for their operations. Such businesses will face increased financial strain, which could potentially lead to reduced production capacity, layoffs, and even business closures and ultimately impede economic progress and dampen job creation opportunities,” portions of the statement read.

Additionally, GUTA highlights the challenges posed by the emission levy, emphasizing concerns over double taxation and the lack of infrastructure for electric vehicles, including charging stations and a reliable power source.

It added that “Ghana already collects energy taxes, including petroleum tax on gasoline, diesel, kerosene and LPG.”

The communique signed by GUTA President, Dr. Joseph Obeng urged government to reconsider these proposed measures and engage in extensive consultations with key stakeholders, particularly the business community, before implementing any new taxation policies.

“It is crucial that the voices and concerns of businesses are heard and taken into account to ensure policies that do not hinder economic growth and investment.

The President of GUTA, Dr. Joseph Obeng expressed satisfaction with the government’s move, emphasising the importance of additional consultations.

He assured businesses of GUTA’s readiness to provide necessary inputs for a more comprehensive bill.

Dr Obeng also commended all Ghanaians who voiced their concerns, thereby contributing to the government’s decision to halt the bill.

“They were so bent on passing this law, but we were also so bent on disallowing it. We have also petitioned Parliament through the Speaker, Alban Bagbin, the minority, majority leaderships and the parliamentary trade and industry committee, we have done all that. And they have seen reason for what we were saying.”

It should not be said that we have to be handed the issuance of permits before we can import. We are not going to do that; it’s an archaic methodology. We will grant the government the needed inputs to achieve this because the onus lies on all of us to ensure that we industrialise.”

On Thursday, December 7, the Trades and Industry Ministry suspended the laying of the L.I.

According to the Minister of Information Kojo Oppong Nkrumah, the move is to allow for further consultations.

Speaking to JoyNews’ Maame Esi Thompson, Mr Nkrumah said “First, we think that the economic objectives will work well for our growth and jobs and our development agenda. Therefore, it is important to get all stakeholders aligned as we go along this process. The idea is to suspend the laying, engage further, and get some more understanding and participation before we go in.

“You know it is an L.I., you (are) going to factor in all of these views. Then, when you lay it, it can mature after the necessary 21 days because it is not a bill that would be amended on the floor. So, this would allow us to complete all of these engagements before any such laying takes place.”

ALSO READ:

• Import Restriction Bill: GUTA sends strong message to Trade Minister

• Gov’t suspends controversial import restriction L.I

The GUTA President, Dr Joseph Obeng has said a clear roadmap will ensure the success of the bill’s implementation.

“There was an engagement with the business community but our recommendations were not factored in. There must be adequate information and a clear roadmap. We should not just be interested in implementing restrictions but put in place measures to boost the local economy and create a favourable business environment,” he said.

Speaking on Adom FM’s morning show, Dwaso Nsem Tuesday, Dr Obeng noted the roadmap will bring to bare the aims and objectives of the Legislative Instrument (L.I) which is currently before parliament.

“What we are expecting is that we have aims and objectives for this policy, and it is not spelt out for even journalists to propagate it well. What is it that we are using the LI to achieve? We want to enhance local productivity.

“We want to attain self-sufficiency for a period of time but what are the timelines for this? It doesn’t spell out the timelines. We are not doing this policy in the abstract. All that we are saying is that we should know the timeline so that when we are going to be restricted, we can hold on to something,” he added.

The Minister of Trade and Industry, Kobina Tahir Hammond is seeking a Legislative Instrument (L.I) aimed at restricting the import of certain strategic products but has not been successful.

The Minority has opposed the regulation three times, citing concerns about the excessive power it grants to the Minister for Trade.

Meanwhile, six business Associations, collectively known as the Joint Business Consultative Forum, including the Ghana Union of Traders Associations (GUTA) and the Ghana National Chamber of Commerce and Industry (GNCCI), have petitioned Parliament to reject the Bill.

The Associations argue that the Bill, if enacted, could have adverse effects on their businesses, impacting prices and disrupting the free flow of goods.

ALSO READ:

• Government must withdraw L.I. seeking to restrict import of strategic products -Minority

• Gov’t pushing for law to ban import of ‘yemuadie’, rice, others without committee approval

The incident occurred as GUTA intensified its mission to close down shops and businesses operated by foreigners engaged in retail activities.

Mobile phone accessories and bags were seized on the streets, triggering heated confrontations and physical altercations.

In a surprising turn of events, dozens of Nigerians mobilized and stormed the New Juaben South Municipal Assembly, where GUTA members had converged for debriefing after their operations.

The Nigerians, demanding the release of their seized items and justice for what they deemed as the mistreatment of their compatriots, created a tense atmosphere at the Assembly.

It took the intervention of Michael Okyere Baafi, Member of Parliament for New Juaben South who is also Deputy Minister for Trades and Industry, to restore order and calm tempers.

GUTA’s stance is rooted in concerns over competition and the potential impact of foreign retailers on the local market.

Samuel Victor Aikens, Eastern Regional Vice Chairman of GUTA, emphasized the Association’s commitment to enforcing the Ghana Investment Promotion Centre (GIPC) Law, which prohibits foreigners from engaging in retail trade.

“Every country has its laws and regulations. GIPC ACT 865 forbids foreigners from entering into retail trade so that is why we are stopping them from operating in retail. We are asking them not to retail. They can bring the goods, give it to Ghanaians to sell it at retail price. So that is why we are trying to prevent them from doing retail. We are not stopping. There are foreigners retailing rice, oil, motors we are going to stop them,” Samuel Aikens said.

However, not all Ghanaians support GUTA’s actions. Some bystanders argue that the Nigerians have brought competitive pricing to the mobile phone business, preventing cheating on the part of Ghanaian dealers.

New Juaben South MP, Michael Okyere-Baafi emphasized the importance of respecting domestic laws despite regional and continental efforts to promote free trade.

He said the GIPC Act does not permit foreign nationals to engage in retail, and the Ministry supports the closure of foreign retail shops but advocates for a peaceful approach.

“Because of what we call ECOWAS UTLS, citizens of countries in the ECOWAS region can enter every market to do business which is duty free, quota free, however you have to get documents to prove that you can do legitimate business. So if you don’t have those documents to prove then you will not be allowed to do business and exactly what is happening.”

This incident comes two weeks after the Eastern Regional branch of GUTA closed down 38 shops of foreigners engaged in retail businesses.

The association has vowed to continue its efforts throughout the yuletide season and beyond.

ALSO READ:

• We’ll force foreigners to comply with our laws – GUTA

• Stop protecting foreigners in retail business – GUTA tells Immigration Service

Mr Ofori-Atta on Wednesday announced the government, as part of its fiscal measures, has decided to waive import duties on Electric Vehicles (EVs) designated for public transportation for eight years.

In addition, he said that import duties would also be exempted for semi-knocked down and completely knocked down Electric vehicles brought into the country by registered EV assembly companies for the same 8-year period.

But GUTA said the budget failed to capture policies needed to deal with issues that will reduce the cost of doing business in the country.

The President, Dr Joseph Obeng explained that, when the cost of doing business is low, productivity will increase and the government will be able to collect more of its desired revenue.

He said this on Asempa FM’s Ekosii Sen programme Wednesday, citing the Value Added Tax (VAT) which is one of the key challenges facing domestic traders.

“We called for the removal of the 1.0% COVID-19 levy, special import levy of 2% that has been imposed on us since the previous administration. We also mentioned the VAT and its complex nature which is creating tension between the business community and GRA but it is unfortunate it was not captured,” he bemoaned.

Dr Obeng, however, said GUTA will not lose sight of some of the reliefs which has been granted though it is not what they expected.

Meanwhile, in a move to promote menstrual hygiene and affordability, the Finance Minister said all locally produced sanitary pads would now be zero-rated.

ALSO READ:

• Remove COVID-19 and Special Import Levies from 2024 Budget – GUTA

• 2024 budget: Ken Ofori-Atta outlines tax relief measures

This action is in response to what GUTA alleges is the government’s failure to fully enforce the Ghana Investment Promotion Act (Act 865), which prohibits foreigners from engaging in retail business in the country.

The Eastern Regional Vice Chairman of GUTA, Samuel Aikins, in an interview with the media said that the lack of enforcement of the GIPC law is having a detrimental impact on local businesses in the region and the country as a whole.

He pointed out that these foreigners often sold inferior products without considering the interests of consumers.

“Their activities are affecting the economy. Look at the soaring inflation, rapid depreciation of the Ghanaian cedi, the collapse of the manufacturing sector, escalating shop rental costs, and damage to the export sector, among others,” he stated.

He cautioned foreigners engaged in retail trade in Koforidua and parts of the Eastern region to vacate the markets before the upcoming Christmas festivities to avert consequences.

He said the branch will go on a rampage to lock up the shops if the foreigners do not comply.

Mr Aikins, however, allayed fears that their action would lead to a shortage of goods on the market during the yuletide.

Clashes between GUTA and foreigners engaged in retail business continue to heighten diplomatic tension between Ghana and Nigeria whose citizens have flooded the local market engaging in retail business.

As a result, in 2021 joint communique signed between Ghana and Nigeria during the Extraordinary ECOWAS Summit seeks to address this problem.

This agreement exempted Nigerians from the $1 million minimum capital requirement as stipulated by the GIPC Act 2013, Act 865, which had previously barred them from participating in Ghana’s retail market.

The exemption was aimed at resolving a 25-year retail dispute between Ghana and Nigeria, and it was officially presented by Ghana’s Speaker of Parliament, Alban Bagbin, to Nigeria’s House of Representatives following the summit.

ALSO READ:

• GUTA locks up foreign shops at Opera Square

• Video: GUTA threatens civil disobedience if gov’t fails to enforce retail trade laws

The President of GUTA, Dr. Joseph Obeng explained that when the cost of doing business is low, productivity will increase and the government will be able to collect more of its desired revenue.

“We are talking about the 1% COVID-19 levy to be removed. We also talk about the special import levy of 2% that has been imposed on us since the previous administration, we also are talking about the VAT, the complex nature of VAT,” he said.

The COVID-19 Health Recovery Levy was introduced by the government in 2021 as a stand-alone levy applied to the gross value of taxable supplies of goods and services provided under the Standard Rate and VAT Flat Rate Schemes.

However, after the World Health Organisation (WHO) declared an end to COVID-19 as a public health emergency, calls have been made to the government to stop the one per cent tax.

The Finance Ministry will be presenting the 2024 budget to Parliament in November. Ahead of the presentation, the Finance Minister, Ken Ofori-Atta has been engaged by interest groups including GUTA.

According to the Finance Minister, a number of these groups have expressed concerns about the high rates of taxes in the country, adding that their concerns will be considered before the presentation.

“Over this period, we’ve met with AGI, GUTA, Chamber of Commerce, all of that to take in the views and predominantly it is a multiplicity of taxes that they have raised as a major concern that we have to look at. So looking at the taxes, looking at access to capital, and the price of capital, I think they will be key issues to address for the private sector,” he assured.

GUTA says despite the assurances received from the Finance Ministry that some taxes will go, the COVID-19 Levy and the special import levy in particular must go.

ALSO READ:

• Make taxes affordable, simple to enhance compliance – GUTA

• Pressure on cedi to ease this week

• Ofori-Atta has nothing to offer cocoa farmers – President of Cocoa…

According to him, the practice of piling more taxes on the few compliant tax-payers in the country is counterproductive to increasing the government’s internal revenue generation.

His comments follow a press statement from the Food and Beverage Association of Ghana highlighting the adverse effects of over-taxation on the Ghanaian economy.

The Association’s executive chairman, John Awuni, emphasized that while various governments have attempted to achieve stable economic growth in Ghana, none have managed to engineer a prolonged period of prosperity, leading to the blame game between successive administrations.

The Association has therefore called for major tax cuts in the 2024 fiscal year.

Supporting their claim, the GUTA president said the trend of over-taxation is what has led to taxation non-compliance.

“Let it not be said that we’re not patriotic – that’s what normally it’s made to look like, no, we understand that we have to pay our taxes but taxes should be affordable. We don’t have to be overpriced out of taxation, we don’t have to be overburdened out of taxation.

You see even when you’re doing economics our economy is not in isolation among the nations in West Africa. And when they say that our tax to GDP in the sub-region is the lowest, why is it so? Because the other neighbouring countries their taxes are affordable,” he said.

Joseph Obeng further urged the government to be prudent with its expenditure patterns.

According to him, the government’s failure to rein in its expenditure bill is largely responsible for the huge GDP-to-tax ratio.

“If we’re not prudent with our expenditure, we’ll pay all the taxes and it will not match up with the GDP that we’re talking about. If you raise the expenditure so high then of course what you’re receiving will become negligible for you,” he added.

ALSO READ:

• Sol Cement reacts to company closure by GRA

• Pressure on cedi to ease this week

• Ofori-Atta has nothing to offer cocoa farmers – President of Cocoa Farmers Assoc.