VAT regime – Adomonline.com https://www.adomonline.com Your comprehensive news portal Wed, 11 Feb 2026 13:20:34 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.4 https://www.adomonline.com/wp-content/uploads/2019/03/cropped-Adomonline140-32x32.png VAT regime – Adomonline.com https://www.adomonline.com 32 32 GUTA expresses concern over lack of engagement on new VAT regime https://www.adomonline.com/guta-expresses-concern-over-lack-of-engagement-on-new-vat-regime/ Wed, 11 Feb 2026 13:20:31 +0000 https://www.adomonline.com/?p=2630093 The President of the Ghana Union of Traders Association (GUTA), Clement Boateng, has expressed frustration over what he describes as the Ghana Revenue Authority’s (GRA) failure to engage the business community on challenges arising from the new Value Added Tax (VAT) regime.

Speaking in an interview on Adom FM’s morning show Dwaso Nsem, Mr. Boateng said although an initial meeting was held with the GRA, there has been no follow-up engagement despite agreements reached.

According to him, the implementation of the new VAT law began during a holiday period, which made it difficult for traders to immediately respond.

“By the time the implementation started, it was a holiday. When we resumed, we approached the GRA because we foresaw that the new law would come with challenges,” he explained.

Mr. Boateng disclosed that at the end of their meeting with the GRA on January 5, both parties agreed to form a technical committee comprising three representatives each from GUTA and the GRA.

“We agreed to form a technical committee made up of three members from GUTA and three from the GRA. The committee was to monitor the implementation and address any challenges that would arise,” he said.

He added that GUTA submitted the names of its representatives on January 7, but since then, the GRA has not responded.

“As we speak, the GRA has not gotten back to us. That is a big problem for us. We have not had any meeting with the committee,” he stated.

Mr. Boateng noted that the committee was expected to work through the first quarter of the year, compile challenges encountered during implementation, and make recommendations to government on possible reviews.

“We gave ourselves the first quarter of the year. After that, the committee was to present its findings and recommendations to government on how to review the tax and ease the burden on businesses,” he explained.

He expressed surprise at the GRA’s recent public response to concerns raised by some traders, especially when a joint statement had earlier been issued after their meeting.

“Even after our meeting, we issued a joint release. So if a section of our members has raised concerns, I don’t understand why the GRA would respond the way they did. It looks like they don’t take the business community seriously,” he said.

His comments follow a press statement issued by the GRA on Tuesday, February 10, 2026, in which the Authority dismissed claims that the new VAT regime would lead to higher consumer prices and distort market competition, particularly among spare parts dealers.

The GRA was responding to concerns by the Abossey Okai Spare Parts Traders Association that the revised VAT framework under the Value Added Tax Act, 2025 (Act 1151), imposes an unfair burden on traders.

The Authority described the concerns as a “fundamental misunderstanding” of the revised system, explaining that under the previous 4% flat rate scheme, traders paid 21.9% input VAT on purchases, which was non-deductible and embedded in their cost structure.

However, Mr. Boateng insisted that traders are already experiencing difficulties under the new system.

“A lot of issues are happening, and it feels like government wants to push this down the throat of the business community. That is not fair,” he said.

He further revealed that the Finance Minister had earlier referred GUTA to the Deputy Minister for further engagement, but that meeting has also been delayed.

“The Finance Minister referred us to the Deputy Minister, but we are being told he is busy and can only meet us on Friday. We don’t even know what they want to do,” he added.

Mr. Boateng stressed that any policy that significantly affects the business community must be carefully reviewed through continuous stakeholder engagement to avoid unintended consequences.

ALSO READ:

]]>
Traders receiving ‘threatening messages’ over new VAT regime – GUTA claims https://www.adomonline.com/traders-receiving-threatening-messages-over-new-vat-regime-guta-claims/ Wed, 11 Feb 2026 12:55:54 +0000 https://www.adomonline.com/?p=2630090 The President of the Ghana Union of Traders’ Associations (GUTA), Clement Boateng, says traders nationwide are receiving what he describes as threatening messages from the Ghana Revenue Authority (GRA) over the implementation of the new Value Added Tax (VAT) regime.

Speaking on Adom FM’s Dwaso Nsem, Mr Boateng revealed that he has been inundated with calls from members nationwide after the GRA directed traders to surrender their old four percent VAT flat-rate books and enrol onto the new 20 percent VAT system.

“The number of calls I receive each day from members is alarming. Members are calling me throughout Ghana because GRA has called them to surrender the four percent book for the enrolment to the 20%,” he said.

According to him, the approach being used by the tax authority is creating fear and uncertainty in the markets.

“People are already receiving threatening messages that GRA will soon go to the market with their taskforce to implement the new VAT regime,” Mr Boateng added.

He warned traders against rushing to comply under pressure, insisting taxation should be flexible and considerate of business realities.

“I have told them nobody should surrender. Laws were made for man and not man for laws. People shouldn’t be forced to pay taxes.

“Taxes should be made affordable and flexible for everyone to pay so the compliance level will be high, else a lot of people will evade, and you will not meet your target,” he stated.

Mr Boateng argued that the new VAT system, if enforced aggressively, would ultimately shift the burden onto consumers.

“Definitely if this takes effect, the consumer will suffer the brunt. No businessman is Father Christmas,” he said.

He further expressed concern about the wider economic impact, saying current market conditions cannot absorb additional tax pressure.

“There is no doubt about the micro-economic indices. Everyone knows that it is going down. It is currently reflecting because prices have gone down even though there are a few traders who don’t want to reduce prices. If this system is going to be implemented, prices will go high again,” he cautioned.

Under the new VAT regime introduced by the GRA, the previous 4% flat-rate VAT system for some traders is being replaced with a standard VAT rate of about 20%, with full input tax deductibility. The policy is aimed at streamlining tax administration, widening the tax net and improving revenue mobilisation.

However, spare parts dealers and market traders, particularly at Abossey Okai and other major trading hubs, have raised concerns that the transition could disrupt business operations and increase prices if not properly managed.

GUTA is calling on the GRA and government to engage traders more respectfully and transparently, warning that intimidation and sudden enforcement could hurt compliance and destabilise the market.

Mr Boateng stressed that cooperation, not threats, is the key to successful tax reforms in Ghana’s informal and semi-formal trading sectors.

ALSO READ:

]]>
Ghana initiates comprehensive review of VAT regime – Ato Forson https://www.adomonline.com/ghana-initiates-comprehensive-review-of-vat-regime-ato-forson/ Mon, 14 Apr 2025 09:06:57 +0000 https://www.adomonline.com/?p=2524883 The Government of Ghana has officially begun a comprehensive review of its Value Added Tax (VAT) system, with the goal of simplifying the regime and improving the country’s business environment.

The development was confirmed during a high-level meeting between Ghanaian officials and Wencai Zhang, Managing Director and Chief Administrative Officer of the World Bank Group. At the meeting, Ghana’s Finance Minister, Dr. Cassiel Ato Forson, reaffirmed the government’s commitment to reforming the VAT framework in close collaboration with international partners.

Dr. Forson revealed that a Technical Assistance Mission from the International Monetary Fund (IMF) is currently in the country, working with local authorities to support the ongoing review process.

This development was confirmed during a high-level meeting between Ghanaian officials and Wencai Zhang, Managing Director and Chief Administrative Officer of the World Bank Group. During the engagement, Ghana’s Finance Minister, Dr. Cassiel Ato Forson, outlined the country’s commitment to reforming the VAT system in close collaboration with international partners.

He further acknowledged that Ghana’s effective VAT rate, currently at 21.9%—one of the highest in Africa—has created compliance challenges and inefficiencies for businesses.

“We are fully aware of the challenges posed by the existing VAT structure,” Dr. Forson said. “That is why we are undertaking a complete overhaul of the system. I can assure our partners and the Ghanaian public that this reform process will be concluded before the main budget is presented in November.”

This development was confirmed during a high-level meeting between Ghanaian officials and Wencai Zhang, Managing Director and Chief Administrative Officer of the World Bank Group. During the engagement, Ghana’s Finance Minister, Dr. Cassiel Ato Forson, outlined the country’s commitment to reforming the VAT system in close collaboration with international partners.

The review is expected to enhance tax compliance, improve revenue mobilization, and create a more business-friendly tax environment.

The World Bank, for its part, expressed strong support for Ghana’s reform efforts and pledged continued collaboration with the government to help build a more efficient and equitable tax system.

ALSO READ:
]]>