Dr. Joseph Obeng, President of GUTA
The Ghana Union of Traders’ Associations (GUTA) has expressed optimism that the government will eliminate what it describes as ‘nuisance’ taxes that hinder business growth in the country.
Ahead of the 2025 Budget Statement in Parliament on March 11, 2025, GUTA has urged the government to fulfill its commitment to reducing the cost of doing business by streamlining the tax system and easing the burden of excessive taxes, duties, and levies.
“With this approach, we fervently expect the following: the Value Added Tax (VAT) should be restructured to be more simplified, affordable, and uniform,” the association stated in a release signed by its President, Dr. Joseph Obeng.
GUTA also called for a review of how duty payments are determined at Ghana’s ports. It proposed that instead of the current weekly or biweekly adjustments based on the Bank of Ghana’s dollar exchange rate, the rates should be fixed quarterly or bi-annually to provide businesses with more stability in clearing goods.
Additionally, the association recommended the introduction of an unconditional tax amnesty program to expand the tax base and ensure that businesses operating outside the tax system are brought into compliance.
This, GUTA noted, would allow companies with tax irregularities to regularize their obligations, thereby enhancing revenue mobilization.
GUTA further emphasized the need to implement a fixed tax system for spare parts, a policy promised in the government’s manifesto. It suggested that the system be introduced as a pilot project before expanding it to cover other imported goods.
The statement also expressed confidence that the 2025 budget and economic policy would focus on stabilizing the local currency, reducing inflation and interest rates, and improving key economic indicators.
“Government expenditure should be properly scrutinized and evaluated to prevent waste and mismanagement of public funds. This will ensure that tax revenue is used efficiently and meaningfully,” the statement added.
GUTA emphasized that it remains hopeful that these measures will be reflected in the upcoming budget to create a more business-friendly environment in Ghana.
MA