In anticipation of the 2024 budget presentation, the Ghana Union of Traders Association (GUTA) has urged the government to revamp the Value Added Tax (VAT) system to ensure uniform rates across all sectors.
Highlighting existing disparities in the current system, where some businesses contend with a 22 percent rate, others with a 4 percent rate, and a subset entirely exempted from VAT by meeting the GH¢200,000 goods threshold, GUTA President Dr. Joseph Obeng emphasized the need for a comprehensive review in the upcoming budget.
This call stems from concerns that the prevailing discrepancies may create disadvantages for numerous businesses.
“The consumer has the discretion of buying what he or she wants, the one paying 22 percent VAT and those paying 4 percent VAT stand at a disadvantage since their goods are likely to be priced high while those not paying any VAT at all sell at affordable prices and are able to make good sale,” he noted.
In addition, Dr. Obeng urged the government to eliminate irksome levies like the COVID-19 health levy and the 2% special import tax in order to stabilize the exchange rate regime.
“Ghanaian businesses are overly saddled with taxes. We also have to contend with high interest rates. Aside that, we are being consumed with inflation, we want the 2024 budget to address this,” Dr Joseph Obeng is quoted by Graphic Business to have said.
On November 15, 2023, Finance Minister Ken Ofori-Atta is scheduled to present the 2024 budget to parliament.