President of The Ghana Union of Traders Association (GUTA), Dr Joseph Obeng, has called on the government to institute fair and equitable tax policies benefiting all citizens.
Speaking at a national stakeholders forum on tax equity in Ghana in Accra, themed “Promoting Tax Equity In Ghana – The Role Of Key Stakeholders,” Dr Obeng expressed concerns about the existing taxation system, administered by the Ghana Revenue Authority (GRA), creating disparities and hindering compliance.
He criticized the unequal tax rates, where some businesses pay 22%, others 4%, and some are exempted based on a GH¢200,000 threshold, deeming it unfair.
Dr Obeng highlighted the consumer’s discretion in purchasing, suggesting that those paying higher VAT (22%) face a disadvantage due to higher pricing, while those exempted sell at more affordable prices, enjoying better sales.
Dr Obeng urged the government to restructure the Value Added Tax (VAT) policies for full compliance, emphasizing the need to reduce taxes to enhance competitiveness globally.
He advocated for artisans, carpenters, mechanics, tailors, and electricians to contribute to taxes for increased revenue.
“The consumer has the discretion of buying what he or she wants, the one paying 22 per cent VAT and those paying 4 per cent 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 sales.
“To increase productivity, we must reduce taxes to compete with other developed countries,” he said.
He stressed that taxing a few more than their output results in low revenue and called for widening the tax net to cover businesses that were previously exempt. Dr Obeng urged innovative approaches to encourage more people to fulfill their tax obligations, avoiding discrimination.
Dr Alex Ampaabeng, Senior Programmes Officer at the International Budget Partnership (IBP), emphasized that the current tax system discourages a significant portion of the population from paying taxes.
He called for government programs and systems that promote equal tax payments and encouraged Civil Society Organizations (CSOs) to advise and engage stakeholders for fair and equitable taxation.
Mr Ampaabeng expressed concerns about taxing the poor and needy, proposing the adoption of effective digital taxation. He urged the government to collaborate with ride-hailing apps like Uber, Bolt, and Yango to ensure tax payments and enhance cybersecurity.
The forum focused on discussions about collaborative efforts among stakeholders to promote tax equity in Ghana, fostering civil society relationships, and identifying priority areas for CSOs to impact tax equity efforts in the country.