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Tag: GUTA

  • GUTA, spare parts dealers, others to appear before Parliament over price reduction

    GUTA, spare parts dealers, others to appear before Parliament over price reduction

    The Ghana Union of Traders Association (GUTA), the Association of Ghana Industries (AGI), the Spare Parts Dealers Association, and others are expected to appear before Parliament to justify their decisions not to reduce prices of their goods and services despite the recent cedi gains.

    The engagement, which is expected in the coming days, comes at a time when pressure is mounting on traders to reduce prices as a result of the local currency’s stability in recent times.

    The reduction of prices in goods and services are yet to reflect on goods, prompting calls for stakeholders to take action.

    In May this year, the Abossey Okai Spare Parts Dealers Association in the Greater Accra Region directed its members to reduce prices of spare parts owing to the reduction of prices of goods due to the appreciation of the cedi.

    They have argued that the significant reduction in the prices of goods and services cannot occur over time.

    A section has noted they are yet to sell off old stock that was bought at higher exchange rates.

    “For now, maybe it can’t be possible because we ordered the goods at a certain rate, which is higher than what we are seeing now.With that price we have to sell, and when the goods finish and you are ordering another one with a reduced [exchange] rate, then definitely the prices will come down.

    Another vendor, Yaw Ansong, echoed “Unless I sell the one which I already ordered and finish before I can reduce the [price] of the goods. I haven’t ordered new one so I can’t reduce the price. If I reduce the price I am going to lose my job,” he stated.

    Eric Osei Danso also explained “For others, price reductions may come—but only if the cedi’s performance remains stable over time.

    The Ghana Union of Traders Association (GUTA) also directed its members to slash their prices in response to the local currency’s gains.

    Committee Chairman Alexander Gabby Hottor-Dze has noted that relevant stakeholders must assist the committee to deliberate on the matter.

    “We have come to understand that the dollar is down and the cedi is also going up so we are going to do what they say but not now. We will go down on prices when we see the dollar is still stable at where it is”.

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

    “The Committee on trade, industry and tourism had called for this meeting 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.

    The cedi has gained significant value, almost 19%, between April and May.

    The government has attributed the appreciation to a combination of factors, including prudent monetary policy, improved market sentiment, and external sector gains.

    The average interbank rates as of Wednesday, June 4, show the US dollar buying at GH₵10.22 and selling at GH₵10.23. The British pound is buying at GH₵13.86 and selling at GH₵13.88. The euro is currently being bought at GH₵11.68 and sold at GH₵11.69.

  • Don’t hoard dollars; cedi is gaining strength – GUTA

    Don’t hoard dollars; cedi is gaining strength – GUTA

    Individuals and businesses have been cautioned against holding on to foreign exchange without immediate need, as the Ghanaian cedi continues to show signs of recovery.

    Charles Kusi Appiah, Head of the Business and Economic Bureau at the Ghana Union of Traders’ Associations (GUTA), advised that unnecessary forex holdings should be liquidated.

    Speaking on Joy News’ PM Express Business Edition on Thursday, May 8, Mr. Kusi Appiah highlighted the current market trajectory that indicates sustained appreciation of the cedi against major international currencies.

    “If you don’t have anything to do with that forex, liquidate it,” he warned, emphasizing that retaining foreign currency in the current climate could result in significant losses.

    He recounted an encounter with a concerned individual seeking guidance. “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 responded.

    He argued that continuing to hold on to dollars or other foreign currencies when there is no pressing need for them defies economic logic. “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 every day.”

    Mr. Kusi Appiah acknowledged that in the past, many traders relied on foreign exchange as a safety net amid volatility in the local currency. “People put their trust in forex when the cedi, the local currency, is not doing well and the 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.”

    However, with reduced demand for foreign currency in international trade and a stable local currency environment, he believes those old assumptions no longer apply. “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?”

    Mr. Kusi Appiah credited government initiatives such as the Gold for Oil programme—referred to as GoldBod—for easing pressure on forex demand. “With the introduction of the GoldBod, where most international transactions use gold, the demand for forex has reduced. Therefore, there’s no need for one to hold forex for any transaction.”

    He noted that many GUTA members have already started adjusting their financial strategies in line with these shifts. “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 that we see now.”

    He attributed the recent stability of the cedi partly to this decline in speculative demand. “When the dynamics have changed and you can see that there’s no need to hold on to it, the forex demand reduces. And that is accounting for the downward trend of forex in our market.”

    To further protect their earnings, Mr. Kusi Appiah encouraged traders to consider alternative forms of investment. “There are other investment options—probably the gold coin—that you can invest in so that you don’t lose totally.”

    Concluding his remarks, he issued a reminder about the risks of speculation. “When forex outperforms cedis, 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.”

  • Adum fire: GUTA calls for properly designed market infrastructure

    Adum fire: GUTA calls for properly designed market infrastructure

    Head of the Business and Economic Bureau at the Ghana Union of Traders Association (GUTA), Charles Kusi Appiah, is calling for a well-structured plan to improve markets nationwide.

    Speaking on the AM Show on JoyNews on Monday, March 24, he highlighted the importance of policies that can help prevent disasters like the recent fire at Adum market.

    Mr. Appiah explained that a properly organized market system should include regular checks on electrical wiring, building safety, and accessibility.

    He stressed that these measures would help detect and fix potential dangers before they lead to major incidents.

    “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 encouraged traders to adopt insurance policies to protect themselves from unexpected disasters. He urged insurance companies to take a more active role in educating market vendors about the benefits of insurance and to reassure them that their claims will be paid when needed.

    “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 urged authorities to create a solid plan to help businesses recover after disasters, ensuring that affected traders have alternative places to continue their work. He also stressed that city planners must take charge by setting up proper trading areas and enforcing rules to prevent such incidents before they happen.

    “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.

  • We’re not expecting new taxes – GUTA to govt

    We’re not expecting new taxes – GUTA to govt

    The Ghana Union of Traders’ Association (GUTA) has urged the Mahama administration to avoid introducing new taxes in the 2025 Budget, stressing that traders are already burdened by existing levies.

    With the Finance Minister, Dr. Cassiel Ato Forson, set to present the budget on March 11, GUTA President Dr. Joseph Obeng emphasized that businesses cannot withstand additional tax pressures. His remarks follow a recent engagement between the minister and traders to discuss their concerns.

    “We’re not expecting new taxes. We’re also not going to be worried when new taxes are tailored to bring in people outside the tax net to pay. That one, we will not be worried. But what we will be worried about is just compounding the taxes on a few of us who pay,” Dr. Obeng stated in an interview with Channel One News’ Charles Owusu Kumi.

    While welcoming the government’s decision to remove some levies, including the betting tax and e-levy, Dr. Obeng stressed the need for a broader tax base rather than imposing additional burdens on compliant taxpayers.

    “Expanding the tax net is welcomed. And whichever means they do to rope in a lot more people who are outside the tax net to come in is also a welcome news,” he added.

    He further praised the Finance Minister’s initiative to engage traders ahead of the budget, describing it as a step in the right direction.

    “It’s the best thing to do. It gives me hope; it’s very worthwhile and refreshing, and I’m happy about that. It’s the best thing that could ever have happened to us, and we’re very grateful,” Dr. Obeng said.

    As traders brace for the upcoming budget, they remain hopeful that their concerns will be taken into account in shaping policies that promote business growth.

  • GUTA charges Akufo-Addo against signing of Ghana Shippers’ Authority Act

    GUTA charges Akufo-Addo against signing of Ghana Shippers’ Authority Act

    Ghana Union of Traders’ Association (GUTA) has called on President Nana Addo Dankwa Akufo-Addo to delay signing the Ghana Shippers’ Authority Act, 2024, into law until major concerns from stakeholders are resolved.

    On July 29, 2024, Parliament approved the Ghana Shippers’ Authority Bill, 2024, after completing its third reading.

    This legislation is designed to oversee the commercial practices of shippers, aiming to address issues related to unjust and excessive fees imposed on traders using Ghana’s ports, airports, and land borders for international commerce.

    In a statement released on August 21, GUTA’s president, Dr. Joseph Obeng, criticized the lack of stakeholder consultation prior to the bill’s passage, emphasizing the need for further review to address these critical concerns.

    “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,” the statement read in part.

    Parliament has stated that the newly enacted Ghana Shippers’ Authority Act, 2024, is designed to bring greater transparency to port fee structures and ensure accountability in the management of international trade cargo across Ghana’s borders.

    The law aims to bolster Ghana’s role as a preferred transit hub for landlocked countries such as Burkina Faso, Mali, and Niger, and to increase the sector’s contribution to the national revenue.

    Despite these objectives, the Ghana Union of Traders’ Association (GUTA) is urging President Nana Addo Dankwa Akufo-Addo to refrain from endorsing the bill until the concerns raised by stakeholders are adequately addressed.

    GUTA’s position reflects apprehension over unresolved issues that they believe must be clarified before the law is enacted.

    Below is the full statement.

    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.
  • Political parties to sign MoU with GUTA to fulfill promises when they come to power

    Political parties to sign MoU with GUTA to fulfill promises when they come to power

    The Ghana Union of Traders Association (GUTA) has revealed it intention to sign a Memorandum of Understanding (MoU) with all prospective governments ahead of 2024 elections

    This initiative aims to safeguard the interests of its members and ensure that political parties fulfill their promises if they come into power.

    During an interview on Joy News’ PM Express, GUTA President Dr. Joseph Obeng noted that, unlike in previous elections, the association is insisting on having input in the development 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 emphasized the significance of this agreement, stating that GUTA is determined to ensure it is not overlooked.

    The Association intends to hold future governments responsible for adhering to the terms outlined in 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 actively voiced concerns over the economic difficulties its members are experiencing, particularly due to the cedi’s depreciation and escalating freight costs from Asia, which have made business operations increasingly challenging.

    The Association has called on the government to maintain the economic progress made since re-engaging with the IMF, stressing that these advancements are vital for the business community.

    Dr. Obeng also highlighted the importance of increased 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 move to establish formal agreements with political parties underscores its dedication to protecting traders’ interests and ensuring their input is considered in the policymaking process.

  • GUTA set to sign MoUs with political parties to protect trader interests

    GUTA set to sign MoUs with political parties to protect trader interests

    Ghana Union of Traders Association (GUTA) has revealed plans to sign a Memorandum of Understanding (MoU) with all potential governments ahead of the forthcoming elections.

    This initiative aims to safeguard the interests of its members and ensure that political parties fulfill their promises if elected.

    GUTA President Dr. Joseph Obeng, speaking on Joy News’ PM Express, emphasized that, unlike in previous elections, the association now insists on having input in the development 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 highlighted the significance of this agreement, stressing that GUTA is determined not to be overlooked.

    The Association intends to hold future governments accountable to the terms outlined in 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 outspoken about the economic difficulties its members are experiencing, especially due to the cedi’s depreciation and escalating freight charges from Asia, which have significantly increased the cost of doing business.

    The Association has called on the government to maintain the economic progress made since re-engaging with the IMF, as these gains are vital 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.

  • GUTA president calls for a stable cedi

    GUTA president calls for a stable cedi

    The President of the Ghana Union of Traders’ Associations (GUTA), Dr. Joseph Obeng, stated that the association’s main focus is on maintaining the stability of the local currency.

    He called on the government to continue supporting economic progress, which is essential for the business sector.

    Dr. Obeng highlighted that GUTA has played a role in the growth of small and medium-sized enterprises (SMEs) by providing funding as a mitigating measure.

    He noted that directing these funds to specific areas has a beneficial effect on the economy.

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

    Dr. Adam credited this positive outcome to effective policy measures, strong economic management, and the steadfast resilience of the Ghanaian people.

    Speaking to the media, 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 emphasized the need for the government to make every effort to maintain this growth, bolster the local currency, and further reduce inflation to help businesses prosper once more.

  • Stop China Mall and China Town from derailing efforts of local manufacturers – GUTA to govt 

    Stop China Mall and China Town from derailing efforts of local manufacturers – GUTA to govt 

    The Ghana Union of Traders’ Association (GUTA) is urging authorities to take decisive action and crack down on foreign involvement in the retail sector.

    GUTA highlights that the retail market, once exclusively reserved for Ghanaians, has now become a haven for foreigners, particularly Chinese traders, who flood the market with inexpensive products.

    Addressing the Customs, Controls, and Regulations Forum organized by the Ghana Investment Promotion Centre (GIPC), GUTA President Joseph Obeng expressed concern that foreigners are saturating Ghana’s retail sector with subsidized goods from abroad.

    Mr. Obeng emphasized that this trend is gradually squeezing out Ghanaian traders and manufacturers from the market.

    “We have China Mall and China Town, which have taken over 40% of the market, and are derailing the efforts of local manufacturers.”

    “All they do is to have their subsidized goods being dumped here (in Ghana) and we do not have the courage to clamp on them,” he opined.

    He disclosed that the market share of Ghanaian traders continues to decline.

    “The local traders’ component is only 20%. The bulk of the goods is brought in by foreign traders.” 

    He elaborated that the activities of foreign traders, who frequently repatriate their earnings in foreign currencies, contribute to the depreciation of the cedi.

    “They don’t bring the correspondent forex for trading, they only go to the black market and change the forex and destroy our economy.”

    Over time, regulators have neglected to address the problem of dumping in Ghana’s retail sector. Despite the country’s laws mandating that certain retail enterprises be reserved for Ghanaians, it seems that foreigners are gradually encroaching on such domains.

    The Customs, Controls, and Regulations forum, organized by the Ghana Investment Promotion Centre, aims to discuss issues impacting businesses and the investor community. It serves as a platform to address investor concerns and shape policy reforms.

  • Businesses experience 56% reduction in their working capital within 6 months – GUTA

    Businesses experience 56% reduction in their working capital within 6 months – GUTA

    Businesses in Ghana have witnessed a sharp decline in their working capital, with a reduction of more than 56 percent within a span of six months, attributed to the worsening economic conditions, stated the Head of the Business and Economic Bureau at the Ghana Union of Traders Association (GUTA).

    During an interview on Joy FM’s Super Morning Show, Charles Kusi Appiah Kubi, highlighted the grave financial difficulties facing the business sector.

    He pointed out that the swift depreciation of the Cedi has been a major factor in this capital erosion.

    “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 additionally observed that the depreciating currency increases the Cost, Insurance, and Freight (CIF) values at the ports.

    He believed these escalating costs would subsequently raise the prices of the products or commodities being traded by businesses.

    “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 grappling with soaring inflation, Mr. Kubi observed that the economy has stagnated. Consumers are reducing their spending, and businesses are witnessing a significant drop 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 pointed out that the financial burden caused by this circumstance extends to the capacity of enterprises to pay their debts.

    “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.

  • Avoid making statements that could provoke trading community – GUTA warns Stephen Amoah

    Avoid making statements that could provoke trading community – GUTA warns Stephen Amoah

    The Ghana Union of Traders Association (GUTA) warned Deputy Minister of Finance, Dr. Stephen Amoah, against statements that could incite the trading community.

    Dr. Joseph Obeng, the Union’s President, expressed disappointment with the deputy minister’s recent comments, blaming GUTA members for the cedi’s decline.

    During an interview on Accra-based Onua FM, Dr. Amoah accused certain GUTA members of using illicit currency exchange services, which he attributed to the cedi’s instability against the US dollar.

    In response, GUTA President Dr. Joseph Obeng urged the deputy finance minister to collaborate with his sector counterpart, Dr. Amin Adam, to address the cedi’s depreciation against major trading currencies.

    “I believe the deputy minister’s comments are 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 told GhanaWeb Business.

    “GUTA strongly disagrees with the deputy minister’s attempt to shift blame for the cedi’s instability. This deflects attention from the government’s responsibility to address the issue. The situation is complex and requires a comprehensive approach,” he stressed.

    Dr. Obeng highlighted South Africa as a case study of a nation with a steady currency, attributing it to factors like robust governance, efficient policies, institutional strength, and cooperation between the government and stakeholders in tackling currency issues.

    “The trading community in Ghana is already struggling with high taxes, duties, and the economic downturn. My advice is for the deputy minister to help find lasting solutions to this ongoing problem,” Dr. Obeng emphasized.

    “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 added.

    The GUTA president affirmed the willingness of its members to aid the government in addressing the persistent depreciation of the cedi against key trading currencies.

    Meanwhile, the Bank of Ghana attributes the cedi’s depreciation and recent developments in the foreign exchange market primarily to sentiments and public statements.

    As of May 29, 2024, the domestic currency is trading at GH¢15.00 to $1 in the forex market and selling at GH¢14.02 on the BoG interbank market.

  • Chinese companies in Ghana are taking over 40% of our businesses – GUTA

    Chinese companies in Ghana are taking over 40% of our businesses – GUTA

    President of the Ghana Union of Traders Association (GUTA), Dr. Joseph Obeng has expressed concern about the increasing presence of Chinese retail businesses in Ghana and has called for amendments to the country’s labor laws in response.

    He highlighted that local businesses have lost approximately 40 percent of the market share to Chinese businesses.

    Additionally, he noted that while local businesses only import 20 percent of goods, foreign companies, particularly Chinese businesses, import 80 percent.

    Dr. Obeng made these remarks during an appearance on TV3’s Hot Issues program on Sunday, May 26.

    “Now our major problem is with the Chinese and we are going to go on them seriously. The Chinatown and China Mall, these Chinese companies here and all that are taking a chunk of our business over 40%,” he said.

    He attributed the rapid depreciation of the local currency to the presence of foreign businesses with significant capital importing large quantities of goods, which has a detrimental effect on the competitiveness of local traders.

    “That is why we tell government that the forex issue, the depreciation of the cedi can be attributed to these group of people because they do not bring the correspondent fund of capital to Ghana.”

    He also proposed that Chinese businesses should be required to bring their capital into Ghana to meet a certain threshold before being allowed to import goods.

    This, he argued, would ensure that the businesses are genuinely invested in the Ghanaian economy and not just operating as extensions of their parent companies in China.

    Dr. Obeng also rejected the notion that local businesses overprice their goods, forcing customers to opt for Chinese businesses.

    “That is what you normally say but it is psychological because you know that we go to China to buy the goods and so once they’re here to make their supermarket and wholesales and all that then you think that your are also going to China [Mall] to buy your goods. The consumer, but they are taking advantage of you, they are not serving you quality even the price is not that low that you think and yet psychologically they all troop to the China Mall, Chinatown, go there and see the cars.

    “And now they even trade on Sundays, they are taking it all,” he lamented.

    If Ghanaian companies are forced to downsize or close due to competition from Chinese businesses, it could lead to job losses for local workers.

    Ghana’s laws on foreign businesses in the country

    The Ghana Investment Promotion Centre Act, 2013 (Act 865) stipulates that a person who is not a citizen may engage in a trading enterprise if that person invests in the enterprise, not less than One Million United States Dollars in cash or goods and services relevant to the investments.

    Section 28(3) of Act 865 further provides that “trading” includes the purchasing and selling of imported goods and services. A further condition imposed on foreign enterprises that intend to engage in trading by Section 28(4) is that such an enterprise must employ at least twenty (20) skilled Ghanaians.

    Section 27(1) of Act 865 generally lays out activities that foreign investors are not permitted to invest or participate in. This list is not exclusive. Other laws have provisions on activities reserved for Ghanaians. These activities include the sale of goods or provision of services in a market, petty trading or hawking or selling of goods in a stall at any place. Other activities not permitted for non-citizens include:

    • the operation of taxi or car hire service in an enterprise that has a fleet of less than twenty-five vehicles

    • the operation of a beauty salon or a barber shop

    • the printing of recharge scratch cards for the use of subscribers of telecommunication services

    • the production of exercise books and other basic stationery

    • the retail of finished pharmaceutical products

    • the production, and retail of sachet water

    Meanwhile, a breach of these laws is punishable offenses.

    Section 40 of Act 865 provides for a list of offenses. A person commits an offence under Act 865 if the person among others, lets out a stall or store in a market to a foreigner; or otherwise contravenes a provision of this Act.

    The effect of this provision is that a person who is not a citizen of Ghana who engages in retail trade without meeting the minimum capital requirements set out in Section 28 of Act 865 commits an offence under Act 865. Ghanaians or non-Ghanaians who let out a stall or a store in a market to a foreigner also commit a breach of Act 865.

  • Address fall of cedi against the dollar – GUTA tells gov’t

    Address fall of cedi against the dollar – GUTA tells gov’t

    The Ghana Union of Traders Association (GUTA) has urged the government to take urgent steps to boost the value of the cedi against major trading currencies, particularly the dollar.

    In a statement dated May 14, GUTA expressed its willingness to collaborate with the government and other stakeholders to address this issue.

    The association emphasized the detrimental impact of the cedi’s depreciation on the business community, especially the trading sector, describing the current situation as a crisis.

    GUTA highlighted that the depreciating cedi, along with rising freight charges from Asia, is significantly increasing the cost of doing business. This situation has led to inflationary pressures, resulting in soaring prices of goods and making it increasingly difficult for businesses to remain profitable.

    Moreover, the weakening cedi has reduced consumers’ purchasing power, leading to a decline in business turnover. The association noted that repaying bank loans has become exceedingly challenging under these economic conditions.

    GUTA also raised concerns about the escalating freight charges and customs duties at the port, which are denominated in dollars. These factors, according to the union, are crippling trade and commerce, causing severe hardships for businesses and consumers.

    Additionally, GUTA pointed out that the current economic conditions have heightened the uncertainty of businesses and the value of credit purchases. This has made it tough for traders to settle debts owed to overseas suppliers, resulting in increased business indebtedness.

  • I won’t get in the way of anti-corruption efforts if elected president – Mahama

    I won’t get in the way of anti-corruption efforts if elected president – Mahama

    The flagbearer of the National Democratic Congress (NDC), John Dramani Mahama, has made a resolute declaration that if elected president in the forthcoming December polls, he will not shield his appointees involved in corrupt practices.

    During a dialogue with members of the Ghana Union of Traders Association (GUTA), Mr. Mahama emphasized the importance of demanding accountability from leaders for the taxes paid by citizens.

    He outlined his plans to establish an independent valuation office aimed at preventing sole sourcing and procurement irregularities.

    Addressing concerns about the misuse of taxpayers’ money, Mr. Mahama stated, “One of the reasons why you are suffering in terms of imposition of revenue and taxes is because of the expenditure side. If the government is raising the money and misusing it through sole sourcing, procurement and so forth, it is your taxpayers’ money that is being wasted and so we must take an interest in that and that is why I have suggested that we are going to have an independent valuation office and any sole sourcing contract must go for value-for-money audit to make sure that it has not been inflated.”

    Additionally, Mr. Mahama underscored the necessity of combating corruption and empowering anti-corruption institutions to function effectively.

    He pledged not to interfere if investigations by institutions like EOCO or OSP reveal misconduct among his ministers.

    Mr. Mahama emphasized his commitment to holding his administration accountable and ensuring that those found guilty of wrongdoing are held responsible, signaling a firm stance against corruption within his government if elected.

    “Aside from that, we must make sure that we cut down on corruption and allow the anti-corruption institutions to work.

    “If people have taken advantage of the country, they must be dealt with, and that is why I said when I come into the office and I am swearing in the ministers, I will caution them, and if they don’t listen and do not do their work well and EOCO or OSP come after you, I am not a clearing agent and I won’t interfere and I will let them do their work,” Mr Mahama said.

  • Adopt 20-point agenda to improve business sector – GUTA to political parties

    Adopt 20-point agenda to improve business sector – GUTA to political parties

    The Ghana Union of Traders (GUTA) has introduced a detailed 20-point agenda aimed at assisting political parties in formulating their campaign manifestos.

    In the document, GUTA emphasized the importance of prioritizing policies that promote entrepreneurship and commerce, highlighting the necessity of creating a favorable business environment.

    Following a meeting with Alan Kyerematen, the leader of the Movement for Change, in Accra, GUTA President Dr. Joseph Obeng emphasized the importance of political parties considering the interests of businesses.

    “We have itemized about 20 points and discussing with them [political parties] to factor them into their manifesto programmes and I think so far so good, we are very impressed with what is going on. Everything has been issue-based and we are discussing this passionately and everybody has conducted themselves well. The cost of doing business is our major concern.

    “The VAT structure is also a major concern. The import substitutions that have been coming back and forth are also a concern. So we have a whole lot of things that we are discussing, how to even industrialize the nation moving from trading to manufacturing and all that.”

  • Mahama’s 24-hour economy policy is feasible – GUTA President

    Mahama’s 24-hour economy policy is feasible – GUTA President

    President of the Ghana Union of Traders Association (GUTA), Dr. Joseph Obeng, has expressed support for the 24-hour economy policy proposed by the National Democratic Congress (NDC) flagbearer, John Dramani Mahama.

    He highlighted the importance of improving the existing policy, which is already in practice.

    Speaking at a meeting with GUTA members in the presence of John Mahama, Dr. Obeng advocated for a strategic shift in the timing of certain commercial activities.

    He suggested that these activities be relocated to nighttime hours to reduce congestion in busy market areas during the day.

    Dr. Joseph Obeng believes that this adjustment could lead to better utilization of space and smoother operations for traders, especially during periods of lower pedestrian traffic.

    “We had a programme at the school of mass communication and at that time, people were opposing it but I told them no, even if it is already there, we can always enhance it. There is more that we can do in the night. There are so many things that create nuisance during the day.

    “When you go to Opera Square, when you go to Kantamanto or Okaishie, in the afternoon when people are moving, that is when we are offloading our goods. So, it makes the place very congested.

    “So, let’s think about the things that create nuisance during the day and fix them in the night,” he stated.

  • Mahama is a humble and respectful leader – GUTA president

    Mahama is a humble and respectful leader – GUTA president

    During an interaction on Tuesday, April 9, 2024, the president of the Ghana Union of Traders’ Association (GUTA), Dr. Joseph Obeng, has spoken highly of former President John Dramani Mahama.

    Dr. Obeng praised the flagbearer of the opposition National Democratic Congress (NDC)’ leadership attributes, describing him as a humble and respectful leader.

    Recalling a past meeting, the GUTA president shared how Mahama warmly received them in his office and appreciated their advice on a project.

    “We are among the first group of people who came to visit you at the castle when you became the vice president. And if you remember, your own friend Ofori was there… and we talked in details.”

    he added “One thing I observed from that meeting was that you took your time and listened. Your Excellency, you remember that when we were talking about how you were going to finance your Savannah project?.

    “We had said that, how are you going to finance it? And then we suggested that we have to go to the (sic) fund, which is being misused, and you listened to us. You remember what you said? You said ‘Knowledge is not in one person’s head’… this showed that you are a listening president.”

  • Don’t watch Ghana plunge into the same forex exchange crisis Nigeria is facing – GUTA to government, BoG

    Don’t watch Ghana plunge into the same forex exchange crisis Nigeria is facing – GUTA to government, BoG

    Ghana Union of Traders’ Association (GUTA) has voiced apprehension regarding the forex exchange crisis currently unfolding in neighboring Nigeria and its possible repercussions on Ghana.

    In response, the association is urging the government and the Bank of Ghana to implement stringent measures to prevent the situation from affecting Ghana adversely.

    Dr. Joseph Obeng, the President of the Union, emphasised during an interview with GhanaWeb Business that it is imperative for the Central Bank and the government to work together to address and regulate what he described as the illicit cross-border money transactions from Nigeria to Ghana.

    “The Union is cautioning the Government and the Bank of Ghana to effectively put in measures that will control and contain the illegitimate cross-border trade in money as well as the transactions nicodemously done through the banks without the notice of the Bank of Ghana.”

    “The Union therefore asks the government to take these developments seriously and act upon them with the utmost urgency,” Dr. Obeng added.

    In recent weeks, Nigeria’s local currency has experienced multiple declines against the US dollar, prompting worries among market observers and the broader trading and business community across West Africa.

    A report from Bloomberg reveals that Nigeria’s currency depreciated by 2.1% to 1,615.94 per dollar in the NAFEM window on Tuesday, based on data provided by FMDQ, which tracks the exchange rate.

    This development marks the lowest point the currency has reached against the US dollar since Bloomberg began compiling such data.

  • You must address influx of foreign businesses in upcoming SONA 2024 – GUTA to Akufo-Addo

    You must address influx of foreign businesses in upcoming SONA 2024 – GUTA to Akufo-Addo

    The Ghana Union of Traders Association (GUTA) has urged President Akufo-Addo to outline strategies for stabilizing the local currency in the forthcoming 2024 State of the Nation Address (SONA) scheduled for Tuesday, February 27.

    In adherence to Article 67 of the 1992 constitution, the President is expected to provide updates on governance, security, education, health, and other nationally significant matters to parliament.

    In a Monday interview with Citi News, Dr. Joseph Obeng, President of GUTA, underscored the government’s imperative to implement incentives fostering the growth of the business sector.

    Dr. Obeng also raised serious concerns about the influx of foreign businesses dominating major trading sectors.

    He appealed to the government to strengthen measures promoting the expansion of local businesses.

    “When it comes to trading it will surprise you to know that the Chinese, China Town and China Mall and all that have taken about 40% of the market for the trading sector. So, what have we to show again? So, we must start thinking about how we can give the commanding heights as promised by our forefathers to the Ghanaian indigenes.

    “And this is one area that we are expecting the government or all other political leaders to start thinking around. Otherwise, the people of Ghana will be disappointed.”

    “And it doesn’t leave anything also for us because they take the best of it and repatriate to their home countries when we are always crying that we don’t have any foreign exchange, the depreciation,” he stated.

  • GUTA plans to establish social contract with presidential candidates ahead of 2024 elections 

    GUTA plans to establish social contract with presidential candidates ahead of 2024 elections 

    Ghana Union of Traders Association (GUTA) has disclosed its intention to establish a social contract with all presidential contenders in the upcoming 2024 election. 

    This initiative aims to foster accountability and transparency from the future head of state, should any of them assume office.

    According to Dr. Joseph Obeng, President of GUTA, the association seeks to hold political aspirants accountable for their pledges and policies, particularly concerning matters affecting the business sector. 

    Dr. Obeng stressed the importance of engaging with all presidential hopefuls to evaluate their proposed policies and make well-informed decisions regarding their potential impact on traders and businesses.

    A significant concern raised by GUTA revolves around tax compliance, with Dr. Obeng advocating for the implementation of affordable tax systems and the expansion of the tax base to enhance revenue generation. 

    He commended Vice President Dr. Bawumia’s proposal to introduce a flat tax regime, citing its potential to simplify tax obligations for both formal and informal sector participants.

    Dr. Obeng emphasized the crucial role of GUTA’s engagement with political parties, highlighting the responsibility to provide input into their manifestos to facilitate national development. 

    He underscored the feasibility of implementing a flat tax rate, drawing on past experiences where similar tax policies yielded positive outcomes.

    The proposed social contract between GUTA and presidential candidates underscores the association’s commitment to promoting a conducive business environment and advocating for policies that support economic growth and development. 

    By actively engaging with political stakeholders, GUTA aims to influence policy formulation and ensure that the interests of traders and businesses are adequately represented in the political discourse.

    As Ghana gears up for the 2024 presidential election, GUTA’s initiative serves as a proactive measure to safeguard the interests of its members and contribute to the overall socio-economic progress of the country. 

    The outcome of these engagements is anticipated to shape the policy landscape and guide the future direction of governance in Ghana.

  • GUTA to ensure accountability of presidential candidates in a new social contract

    GUTA to ensure accountability of presidential candidates in a new social contract

    Ghana Union of Traders Association (GUTA) has made a significant decision to establish a social contract with all presidential candidates competing in the upcoming 2024 presidential election.

    This proactive step aims to ensure accountability from the candidates and demand transparency should any of them ascend to the presidency.

    Dr. Joseph Obeng, the President of GUTA, emphasised the need for accountability, highlighting past instances where politicians made unchecked claims without facing consequences.

    Speaking to Rainbowradioonline.com during an event organized by the New Patriotic Party on Wednesday, February 7, 2024, where Vice President Dr. Bawunia outlined his policies and vision for Ghana, Dr. Obeng expressed GUTA’s intention to engage with all presidential aspirants regarding their policies, particularly those affecting the business community.

    He stressed the importance of tax compliance as a longstanding concern for GUTA, emphasising the necessity of affordable tax systems and broadening the tax base to ensure more individuals fulfil their tax obligations.

    Dr. Obeng applauded Dr. Bawumia’s proposal to implement a flat tax regime, citing its potential to facilitate compliance among those in the informal sector. This, he believes, presents a promising opportunity for enhanced tax compliance and economic growth.

    He maintained that “meeting with the parties was crucial and that is why we have written to all the parties that we have opened our doors to meet all of them so they will factor in inputs into their manifestos because every political party is a potential winner in the 2024 presidential election. So we have a responsibility to present to them our input so that when they win the elections, they will implement it to help the country develop.

    Meanwhile, he has stressed that the flat rate announced by the Vice President is doable, referencing that we have done a flat rate of 3 percent in the past and were able to achieve our targets.

    “It is achievable and will help the government. If the taxes we pay are not affordable, it does not ensure compliance.”

  • GUTA ‘wails’ over impact of emissions levy, VAT on electricity on businesses 

    GUTA ‘wails’ over impact of emissions levy, VAT on electricity on businesses 

    Ghana Union of Traders Association (GUTA) has vehemently opposed the government’s proposed implementation of Value Added Tax (VAT) on electricity charges and the introduction of an emission levy. In a press release issued on February 4, 2023, GUTA expressed serious apprehensions regarding the potential negative economic impacts these measures could inflict on businesses operating within the country.

    GUTA contends that the proposed VAT on electricity charges would have direct and adverse effects on businesses, especially those heavily reliant on electricity for their operations. The association predicts that such businesses may face heightened financial strain, potentially leading to reduced production capacity, layoffs, and, in extreme cases, business closures, thereby hindering economic progress and stifling job creation opportunities.

    The release also draws attention to the challenges presented by the emission levy, emphasizing concerns about double taxation and the current lack of infrastructure for electric vehicles, including charging stations and a reliable power source. GUTA highlights that Ghana already imposes energy taxes, such as the petroleum tax on gasoline, diesel, kerosene, and LPG.

    Dr. Joseph Obeng, the President of GUTA, underscored the need for the 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 communique stated.

    As the government grapples with economic challenges and explores revenue-generation avenues, GUTA’s opposition underscores the importance of striking a balance that promotes economic sustainability while addressing fiscal concerns. The call for inclusive dialogue with business stakeholders aims to ensure that any new policies are well-informed, considerate of business realities, and contribute positively to Ghana’s economic growth.

  • Mali, Burkina Faso and Niger’s exit from ECOWAS will affect businesses and supply of goods – GUTA

    Mali, Burkina Faso and Niger’s exit from ECOWAS will affect businesses and supply of goods – GUTA

    The Ghana Union of Traders Association (GUTA) has expressed concerns about potential disruptions to its supply chain within West Africa following the recent announcement by military leaders in Mali, Burkina Faso, and Niger to officially leave the Economic Community of West African States (ECOWAS).

    According to the President of the Association, Dr. Joseph Obeng, the departure of these countries could create more hurdles in doing business.

    “It will surely have an impact, and we do not know how it’s going to affect the free flow of traffic and humans. The earlier we try to find a solution to this better,” he said.

    The three countries, currently facing sanctions for overthrowing democratically elected governments, cited inhumane sanctions as the reason for their withdrawal from ECOWAS.

    Ghana, particularly, is apprehensive about the economic and food security implications, as its main source of supply for items like onions, tomatoes, and other staples comes from Burkina Faso.

    While there are fears of adverse impacts on trade, the country’s Ambassador to Burkina Faso, Boniface Gambilla, suggests that it is too early to make definitive predictions about the situation.

  • Productivity can be boosted by reducing taxes to compete on a global scale – GUTA to govt

    Productivity can be boosted by reducing taxes to compete on a global scale – GUTA to govt


    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.

  • There is inequality in payment of taxes – GUTA tells govt

    There is inequality in payment of taxes – GUTA tells govt

    President of the Ghana Union of Traders Association (GUTA), Dr. Joseph Obeng, has emphasized the need for fair and equitable taxes for all citizens in Ghana.

    Speaking at a national stakeholders forum on tax equity, Dr. Obeng raised concerns about the current taxation system carried out by the Ghana Revenue Authority (GRA), which, according to him, leads to non-compliance by some businesses due to perceived inequalities.

    He specifically pointed out discrepancies in tax rates, with some businesses paying 22%, others 4%, and some being exempted based on the GH₵‎200,000 threshold.

    “The consumer has the discretion of buying what he or she wants, the one paying 22% VAT and those paying 4% 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,” he noted.

    Dr Obeng said the government must implement policies to restructure the Value Added Tax (VAT) to ensure full compliance.

    “To increase productivity, we must reduce taxes to compete with other developed countries,” he added.

    Dr. Joseph Obeng emphasized the importance of widening the tax net to include artisans, carpenters, mechanics, tailors, electricians, and other businesses that were not previously paying taxes.

    He argued that this expansion of the tax base would generate more revenue for national development. Dr. Obeng expressed concern that the current tax system was taxing a few businesses disproportionately, leading to lower overall revenue.

    He urged the government to ensure fair and equitable taxation to encourage compliance and contribute to the country’s development.

    “We need to find innovative ways of bringing a lot more people to comply with their tax obligations, failure to do that enforces discrimination,” he stated.

    Dr. Alex Ampaabeng, Senior Programmes Officer at the International Budget Partnership (IBP), emphasized the need for a fair and equitable taxation system that includes a larger portion of the population. He expressed concern that the current system, where only a fraction of the population pays taxes, serves as a disincentive for others to comply.

    Dr. Ampaabeng highlighted the low number of individuals in the informal sector paying taxes, emphasizing the importance of addressing this issue to achieve tax equity. He called on Civil Society Organizations (CSOs) to actively engage with key stakeholders and contribute to the development of fair taxation policies.

    Additionally, he advocated for the government to explore effective digital taxation and policies that encompass online workers.

    “Government should start with the riding apps like Uber, Bolt, and Yango to ensure payment of taxes and also to ensure safety from cybercrime,” he added.

    The forum saw discussions on how different stakeholders could work harmoniously to promote tax equity in Ghana and enhance civil society relationships.

  • GUTA satisfied with suspension of Import Restrictions Bill

    GUTA satisfied with suspension of Import Restrictions Bill

    The Ghana Union of Traders Association (GUTA) has expressed its approval of the government’s decision to suspend the Export and Import Regulations 2023 Bill.

    Dr. Joseph Obeng, the President of GUTA, conveyed satisfaction with the government’s move and stressed the significance of conducting additional consultations.

    Dr. Obeng assured businesses that GUTA is prepared to contribute essential inputs for the development of a more comprehensive bill. Additionally, he commended all Ghanaians who raised concerns, acknowledging their role in influencing 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 Ministry of Trades and Industry announced the suspension of the laying of the Legislative Instrument (L.I.).

    The Minister of Information, Kojo Oppong-Nkrumah, stated that the decision was made to facilitate additional consultations on the matter.

  • Ban importation of selected products instead of implementing restriction – GUTA to govt

    Ban importation of selected products instead of implementing restriction – GUTA to govt

    The President of the Ghana Union Traders’ Association (GUTA), Dr. Joseph Obeng, has advocated for a ban on the importation of selected products rather than imposing restrictions.

    Dr. Obeng believes that achieving self-sufficiency is crucial for every country, and determining the appropriate course of action has become a challenge.

    Speaking to the media in Parliament on Tuesday, December 5, Dr. Obeng expressed concern that the government’s intended approach to building the local industry through restrictions would be counterproductive.

    He pointed out that the success of other industries cannot be solely attributed to obtaining permits, noting that some locally produced goods have not thrived as expected when similar actions were taken by the government.

    “So, the way to go is not restricting it. We have even made it clear that we will be better off that they ban the products rather than to bring restrictions and impediments on our way of trading in this era of trade liberalization,” he said.

    The President of the Ghana Union Traders’ Association (GUTA) clarified that they would not accept anything that could impede trade facilitation and hinder business growth.

    “That’s exactly what we’ve told the committee that they should hold on with this L.I and that would support the government in its quest to increase productivity so that we will patronise same. That’s essentially what we need as a country.”

    Dr. Obeng further explained that serious challenges could arise if the country lacks the necessary produce or if the produce is excessively priced, potentially hindering sales to neighboring countries. In response to this concern, he emphasized the urgent need to address these issues rather than imposing restrictions on the goods.

    Dr. Obeng highlighted that achieving the country’s goals requires implementing appropriate measures to ensure clear alternatives are available, particularly in the context of importation.

    “We are traders, if you say we should stop buying from outside, then you are telling us that we should have access to the produce from within, but if you haven’t had any measures that would give us the comfort and the assurance that we have the goods from within, then we are doing the whole exercise in emptiness,” the GUTA president said.

  • GUTA engages in confrontation with foreign traders over unlawful retail operations

    GUTA engages in confrontation with foreign traders over unlawful retail operations

    On Monday, November 20, 2023, chaos unfolded in Koforidua, the Eastern Regional Capital, as clashes erupted between members of the Ghana Union of Traders Association (GUTA) and predominantly Nigerian foreign retailers.

    The incident unfolded as GUTA escalated efforts to shutter shops and businesses operated by foreigners engaged in retail activities.

    Heated confrontations and physical altercations ensued on the streets as mobile phone accessories and bags were seized.

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

    Demanding the release of their confiscated items and seeking justice for what they perceived as mistreatment of their compatriots, the Nigerians created a tense atmosphere at the assembly.

    The intervention of Michael Okyere Baafi, Member of Parliament for New Juaben South and Deputy Minister for Trades and Industry, was necessary to restore order and pacify tempers.

    GUTA’s actions are 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, and give them to Ghanaians to sell 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, and motors we are going to stop them,” Samuel Aikens stated.

    Not all Ghanaians, nevertheless, agree with GUTA’s policies. Bystanders claim that because Nigerians have competitively priced mobile phones, Ghanaian dealers are no longer able to cheat.

    The Member of Parliament for New Juaben South, Okyere Baafi, stressed the need of upholding national laws in spite of efforts made on a continental and regional level to encourage free trade. He emphasized that the GIPC Act forbids foreign nationals from working in the retail industry, and the Ministry is in favor of closing overseas retail locations while promoting a nonviolent strategy.

    “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 clash follows the closure of 38 shops belonging to foreign retailers by GUTA’s Eastern Regional branch two weeks ago. The association remains steadfast in its commitment to intensify these efforts during the Yuletide season and beyond.

    The confrontations between GUTA and foreign retailers contribute to diplomatic strains between Ghana and Nigeria, where Nigerian citizens have flooded the local market engaging in retail activities.

    In an attempt to address this issue, a joint communique was signed in 2021 between Ghana and Nigeria during the Extraordinary ECOWAS Summit. The agreement proposed a reconsideration of the 1-million-dollar minimum requirement for foreigners in trading enterprises under section 28(2) of the Act.

    This move aimed to resolve a 25-year retail dispute between Ghana and Nigeria and was officially presented by Ghana’s Speaker of Parliament, Alban Bagbin, to Nigeria’s House of Representatives following the summit. Speaker Bagbin expressed that this intervention marked the conclusion of the retail impasse between the two nations.

    The adjustment sought to facilitate the regularization of businesses run by affected Nigerian retail traders previously excluded from the market. Additionally, a special concession was introduced, reducing the stamp duty requirement to 0.5%, with the assurance that it would not apply to Nigerian traders.

  • Tax reliefs will benefit just a few, many businesses will still struggle – GUTA

    Tax reliefs will benefit just a few, many businesses will still struggle – GUTA

    The Ghana Union of Traders’ Associations (GUTA) has expressed dissatisfaction with the tax reliefs outlined in the 2024 budget presented to Parliament on November 15.

    GUTA believes that the granted reliefs lack significant impact and will only benefit a limited number of businesses and citizens.

    During the budget presentation, Finance Minister Ken Ofori-Atta on Wednesday, announced several measures aimed at supporting businesses and the general population.

    Notable reliefs include the extension of zero-rated Value Added Tax (VAT) on locally manufactured African prints, sanitary pads, and locally assembled vehicles. Additionally, import duty waivers were introduced for electric vehicles and agricultural machinery.

    In addressing environmental concerns, Ofori-Atta outlined the government’s plan to expand the Environmental Excise Duty to cover plastic packaging, industrial emissions, and vehicle emissions.

    Despite GUTA being consulted prior to the budget presentation, its president, Dr. Joseph Obeng, expressed disappointment that their inputs were not considered. Dr. Obeng emphasized that businesses would continue to face challenges as many of their existing issues remain unaddressed.

    “We were consulted and we gave our inputs and we thought that they were going to be considered because we made very meaningful inputs, but our demands were not met especially those of us in the trading community.”

    “But admittedly, some segment of the business community have gotten some reliefs and these reliefs are also positive. When you look at the relief for agric machinery, relief on raw materials for pharmaceuticals, relief for African prints, those of electric cars and all that, these are positive but they’re in the minority “he noted.

    Dr. Joseph Obeng highlighted that the high cost of doing business would persist because the granted reliefs only benefit a small fraction of businesses. According to him, the measures announced in the 2024 budget do not have a broad enough impact to alleviate the financial challenges faced by the majority of businesses.

    “If you look at the general cost of doing business in this country and what we were seeking, then of course I will say that the status quo remains. The cost of clearance at the port and all that everything still remains. The high rate of taxes that we are made to pay, the number of taxes that have been imposed on us, all of these have not been addressed although just a fraction that has gotten the relief, but on a broader scale I must say the status quo remains the same, and most companies are going to fall,” he lamented.

    He raised concerns about the government’s decision to maintain levies such as the COVID-19 levy, questioning its relevance given that the pandemic is no longer a current threat.

    “We also demanded that the COVID levy should be removed because it’s a nuisance tax. There’s nothing nuisance than the COVID levy. It came to solve a specific purpose and it should be out of the table. It’s as simple as that,” he argued.

    Dr. Obeng dismissed the suggestion that the government is retaining the COVID-19 levy to offset debts incurred as part of measures to address the pandemic.

    In response to that argument, he said “But we also know that some funds also came in, and we also know that the COVID pandemic came to destroy businesses. Has that also been taken into consideration; and that the pandemic that has come to destroy businesses, we impose levies on the same businesses.

    “There’s no precedent anywhere in the world. And those countries did they also not incur cost in combating the pandemic.? We have to weigh and assess the issues properly to know whether we are being treated fairly”he noted.

    The Special Import Levy is still on the table after it had been introduced with the same reason that we had a special problem, and that the business community should allow; that was introduced by the previous government. If we do this, it means that the business community is not going to have confidence and trust in leadership because you can’t say that something is temporary and then it becomes a tax in perpetuity when businesses are collapsing and have been overtaxed. It is not fair,” Dr Obeng bemoaned.

    The President of GUTA pointed out that under these circumstances, businesses are left with no alternative but to transfer the incurred costs to consumers.

    “Now we don’t have any reliefs, and the natural thing is to pass the cost to the consuming public. But how are we going to do that where consumers are also being eaten away with their purchasing power by the effects of inflation. How are they going to even absorb this cost; and so what happens eventually is that we lose our capital. This is what is going to happen,” he noted.

    Dr. Obeng further criticized the existing structure of the Value Added Tax (VAT), asserting that the current system lacks fairness. He attributed the confusion often observed between traders and the Ghana Revenue Authority (GRA) to this perceived inequity in the VAT system.

  • Overhaul VAT system to tackle gaps – GUTA urges ahead of 2024 budget

    Overhaul VAT system to tackle gaps – GUTA urges ahead of 2024 budget

    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.

  • GUTA warns, “We will strongly reject the return of CTN

    GUTA warns, “We will strongly reject the return of CTN

    The Ghana Union of Traders Association (GUTA) has cautioned against the potential reintroduction of the Cargo Tracking Network (CTN) at the ports, set to take effect on November 1, 2023.

    The CTN is a system designed to furnish the Ghana Customs Division and other relevant stakeholders with real-time shipment data, facilitating efficient oversight of cargo review processes and import traffic management into Ghana.

    Dr. Joseph Obeng, the President of GUTA, responded to this development in an interview with GhanaWeb Business, expressing strong opposition from the business community, particularly at a time when many companies are still grappling with the lingering effects of the ongoing economic downturn.

    “This CTN was first introduced in 2018 and as a result of severe agitation of the policy within the business community, it was taken off and is now being smuggled back at a time when most businesses are struggling under the effects of the economic hardship and other cost of doing business,” the GUTA president told GhanaWeb Business via phone on October 31, 2023

    “We [GUTA] therefore entreat the business community to ignore this directive which takes effect from November 1, 2023, until the right and relevant stakeholder engagement has been held with the business community over the CTN’s reintroduction,” Dr Obeng added.

    The GUTA president went on to say that the trading community had been led to believe that the current ICUMS would address the CTN’s bottlenecks, so the CTN would not be approved.

    “We know ICUMS has been efficient since its implementation at the ports and so a reintroduction of the CTN would be counterproductive to the business community. The CTN impedes the ease, time and cost of doing business as we have always argued over in the past. Businesses are currently experiencing serious challenges we are not going to accept a reintroduction of this counterproductive CTN policy,” the GUTA president emphasised.

    In the meantime, the trading community swiftly opposed the CTN when it was first implemented at the ports in 2018 because they thought it would make doing business more difficult, time-consuming, and expensive.

  • 2024 budget must see removal of COVID-19 and Special Import levies – GUTA to govt

    2024 budget must see removal of COVID-19 and Special Import levies – GUTA to govt

    The Ghana Union of Traders Association (GUTA) has urged for the elimination of the COVID-19 Levy and the Special Import Levy from the 2024 budget.

    President of GUTA, Dr. Joseph Obeng, clarified that reducing the cost of doing business would boost productivity and enable the government to meet its revenue targets more effectively.

    “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.

    In 2021, the government introduced the COVID-19 Health Recovery Levy as a distinct tax, applied to the total value of taxable supplies of goods and services under the Standard Rate and VAT Flat Rate Schemes.

    As the World Health Organization (WHO) declared the end of the COVID-19 pandemic as a public health emergency, various voices have called for the discontinuation of this one percent tax.

    The Finance Minister, Ken Ofori-Atta, has engaged with interest groups like GUTA in preparation for presenting the 2024 budget to Parliament in November.

    He has acknowledged the concerns raised by these groups about the high tax rates in the country and indicated that these concerns will be taken into consideration during the budget 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.

    Despite receiving assurances from the Finance Ministry that some taxes will be reduced, the Ghana Union of Traders Association (GUTA) maintains that both the COVID-19 Levy and the Special Import Levy, in particular, must be completely eliminated.

  • GUTA labels Makola market “Ghetto-Like” after recent fire incident

    GUTA labels Makola market “Ghetto-Like” after recent fire incident

    Director of communications for the Ghana Union of Traders Association, George Kwenning, has characterized the Makola market as an unorganized, ghetto-like structure.

    He claimed that SSNIT failed to consciously try to properly organize the market.

    His remarks follow the October 21, 2023, fire that destroyed the Makola Shopping Makola mall.

    “As GUTA we are going to support our members but we expect the government to come to the aid of these business communities as a matter of urgency because they have lost everything.

    “We will be meeting those who own the facility, we will also be meeting the Accra Metropolitan Assembly (AMA) and see the way forward. Most of our markets our custom-made markets, which are built by the people themselves. We only have a few markets that have been put up by the authorities like the Kaneshie Market is well-organized,” he said on Accra-based TV3.

    Kwenning added that the layout of the market impedes movement and makes it hard

    “This [Makola] market was put up by SSNIT so it is not part of the custom-made markets, this is [supposed to be] a well-structured market but we can’t say that, it is like a ghetto, and for SSNIT to put up such a structure, it is unfortunate, we don’t know what informed them to put up such a structure.

    “I was even surprised that the fire service was able to come here to put the fire off because there is no space. We expect SSNIT to, as a matter of urgency, relocate these people to engage in their trade and we want the government to support them to engage in their trade,” he added.

    https://www.youtube.com/watch?v=I2Lv16yv84g
  • Refuse to be intimidated or harassed by GRA – GUTA members

    Refuse to be intimidated or harassed by GRA – GUTA members

    The leadership of the Ghana Union of Traders Association (GUTA) has urged its members to rebuff any harassment from Ghana Revenue Authority employees.

    Dr. Joseph Obeng, the president of GUTA, made it clear that while his organization’s members would continue to pay taxes, they would reject any attempts to intimidate businesspeople.

    Making this known at a press conference held in Accra on Wednesday, September 20, 2023, he said, “I am not saying that they should resist paying taxes, I am saying that they should resist impunity, harassment, and intimidation.”

    Leave us in peace

    After filing and paying their taxes, traders should be able to conduct their business as usual, he further pleaded with the Ghana Revenue Authority.

    “Our goods are in detention with you, sometimes two weeks, 1 month…do whatever you want to do and let us pay whatever we have to pay. After clearance, leave us in peace,” the GUTA President said.

    He contends that Ghana’s more than 3 million trading communities, rather than the political influence of the politicians, are where the people’s power truly lies.

    Dr. Obeng observed that the irate trading communities were prepared to discuss problems that had recently affected their firms.

    He said, “The authority of the people, the power of the people is not vested in the politician, it’s not vested in the GRA, it is vested in the boundary of Ghana and in this case, I am talking about 3 million trading community who will just rise up and talk to issues that is destroying their businesses.”

    After GUTA members claimed that commodities with paid duties and port clearance were frequently detained by these customs taskforces, resulting in extortion, delays, and re-examinations, substantial penalties were levied against the owners of the items.

  • Resist any form of harassment by GRA – GUTA charges members

    Resist any form of harassment by GRA – GUTA charges members

    The Ghana Union of Traders (GUTA) has called on its members to stand firm against any attempts at harassment or intimidation by Ghana Revenue Authority (GRA) officials.

    The union has alleged that the GRA has been seizing their shipments in transit from Accra to other regions on suspicions of goods underreporting.

    The President of GUTA, Dr. Joseph Obeng, voiced his concerns at a press conference, stating that the GRA has not provided any valid justification for these actions against traders.

    “A few days ago our Ashanti region branch issued a press conference on this constant harassment and intimidation of traders in the region by GRA officers after their cargoes had passed through the due clearing processes at the port of Tema and released them to them.

    “The GRA cannot assign any cogent reason for the harassment of the traders in the Ashanti region apart from their usual flimsy explanation that the Ashanti region only contributes only about 12% to the national revenue.

    “They also claim that they do not understand why goods in the Ashanti region are cheaper than those in the Greater Accra region; failing to recognize the simple fact that purchasing power and demand for goods and services in Accra are higher than any part of the country,” he said.

    During a subsequent radio interview on Joy FM’s Midday News, Dr. Joseph Obeng revealed that the Ghana Revenue Authority (GRA) officials and other relevant stakeholders have been informed about the harassment faced by traders.

    Despite these notifications, their concerns have yet to be adequately addressed.

    “Yes, we’ve done everything. We’re almost always in touch with GRA complaining about these issues. As a matter of fact, we made a whole seminar out of it, we went to Kumasi at the Golden Tulip, now Lancaster Hotel on the 8th of June and all the stakeholders were there, and we talked about this issue.

    “They said they’re going to stop and it’s still persisting. It means that they’re not taking it seriously and that we have to take our destiny into our hands,” he said.

    Furthermore, he emphasized that if the harassment and intimidation continue, traders have been advised to firmly resist such actions through any means available to them.

    “Pure resistance, simple resistance that you do not allow anybody to come and harass and intimidate you by telling you to come and bring your goods for further examination where you have paid the legitimate duty at the port and all that.

    “The Kumasi people have been told not to allow those things to happen to them again. And that if they do it to individuals, then collectively all of us will come on board and agitate and whatever resistance that we’ll put up will be for your imagination,” Dr Obeng said.

  • Taxes are not intended to cause firms to fail – GUTA

    Taxes are not intended to cause firms to fail – GUTA

    The multiple tariffs levied on goods and services that are impeding the expansion of their enterprises have been decried once more by the Ghana Union of Traders Association (GUTA).

    Dr. Joseph Obeng, the Association’s president, has argued that taxes are a complimentary measure to cushion government, not a means of bringing down enterprises.

    His remarks follow allegations that the Ghana Revenue Authority (GRA) has been intimidating and harassing its members.

    Dr. Obeng emphasized at a news conference on September 20, 2023 that the Value Added Tax (VAT) must be designed to include both dealers and customers in the tax net.

    “We are also open to even challenge us in court because they will lose it. They have to structure the VAT system so that compliance will be good so that it will be conducive for me…taxes are not meant to destroy businesses…taxes are complementary because government needs it to survive, government needs your business to grow so that the little taxes you get will also grow and help government,” he said.

    You may remember that GUTA has lamented taxes and how they are harming their businesses over the past few months.

    The Association urged the Ghana Revenue Authority to look for creative ways to include more people in the tax system.

    According to the report, despite being entitled to pay taxes, 13 million people avoid doing so because of flaws in the tax code.

  • Govt over-burdening us with taxes – GUTA

    Govt over-burdening us with taxes – GUTA

    President of the Ghana Union Traders Association (GUTA), Dr Joseph Obeng, has bemoaned the high-tax environment businesses are currently operating in.

    In his submission to discussions on tax payment and evasion during the Graphic Business/Stanbic Bank Breakfast meeting held at Labadi Beach Hotel on Tuesday, September 19, Dr Joseph Obeng noted that businesses are currently struggling as they are unable to reflect the exorbitant taxes they pay to the government on the cost of their commodities.

    He explained that consumers form an integral part of the business cycle and, hence, cannot be made to bear the total cost derived from high taxes.

    For him, it would be unwise to take such a decision as consumers are also being hit by the economic crisis characterized by high inflation, high interest rates, among others.

    He said: “The taxes that we pay here are just too much compared to the sub-region. So taxes should be simplified and structured in a manner that will ensure compliance. That is why were are not getting the tax to GDP ratio to 20 percent, like our neighbours are doing. We are having difficulty as a business community to navigate through this turbulence of economic situation that we are having here.”

    “We have to contend with high cost of doing business in this country. The duties that we pay, the high interest rates, the inflation. It makes businesses very difficult to do. While doing that, government is still compiling alot of taxes on us, even to the point of harassing us in tax payment. When we are trying to do all these things and navigate through, then the consuming public is also on us saying that we should reduce prices.”

    According to Dr Joseph Obeng, businesses would have to shut down if they listened to the plea of the consumer and reduced the prices of goods. He added that businesses would not be able to generate profits, the primary reason for their existence.

    “How do we break even in our businesses? That is the difficulty that we have to contend with. Because the purchasing power of the consuming public is so minimal because of the effect of inflation.

    “We do not do the business in isolation, we do it with the consuming public. So we cannot also overburden them. We cannot overprice our goods so that the consumers cannot patronize them,” he stated.

    In April this year, Parliament passed the following acts: Excise Duty (Amendment) Act, 2023 (Act 1093), Ghana Revenue Authority (Amendment) Act, 2023 (Act 1096), Growth and Sustainability Levy Act, 2023 (Act 1095), Income Tax (Amendment) (No. 2) Act, 2023 (Act 1094) and Revenue Administration Act, 2022 (Act 1086).

  • How do we break-even when we reduce prices – GUTA laments high taxes

    How do we break-even when we reduce prices – GUTA laments high taxes

    President of the Ghana Union Traders Association (GUTA), Dr Joseph Obeng, has highlighted the challenges businesses will face in the country in their bid to make their commodities affordable to consumers amidst a high-tax environment.

    In his submission to discussions on tax payment and evasion during the Graphic Business/Stanbic Bank Breakfast meeting held at Labadi Beach Hotel on Tuesday, September 19, Dr Joseph Obeng noted that businesses are currently struggling as they are unable to reflect the exorbitant taxes they pay to the government on the cost of their commodities.

    He explained that consumers form an integral part of the business cycle and, hence, cannot be made to bear the total cost derived from high taxes.

    For him, it would be unwise to take such a decision as consumers are also being hit by the economic crisis characterized by high inflation, high interest rates, among others.

    He said: “The taxes that we pay here are just too much compared to the sub-region. So taxes should be simplified and structured in a manner that will ensure compliance. That is why were are not getting the tax to GDP ratio to 20 percent, like our neighbours are doing. We are having difficulty as a business community to navigate through this turbulence of economic situation that we are having here.”

    “We have to contend with high cost of doing business in this country. The duties that we pay, the high interest rates, the inflation. It makes businesses very difficult to do. While doing that, government is still compiling alot of taxes on us, even to the point of harassing us in tax payment. When we are trying to do all these things and navigate through, then the consuming public is also on us saying that we should reduce prices.”

    According to him, businesses would have to shut down if they listened to the plea of the consumer and reduced the prices of goods. He added that businesses would not be able to generate profits, the primary reason for their existence.

    “How do we break even in our businesses? That is the difficulty that we have to contend with. Because the purchasing power of the consuming public is so minimal because of the effect of inflation.

    “We do not do the business in isolation, we do it with the consuming public. So we cannot also overburden them. We cannot overprice our goods so that the consumers cannot patronize them,” he stated.

    In April this year, Parliament passed the following acts:

    • Excise Duty (Amendment) Act, 2023 (Act 1093)
    • Ghana Revenue Authority (Amendment) Act, 2023 (Act 1096)
    • Growth and Sustainability Levy Act, 2023 (Act 1095)
    • Income Tax (Amendment) (No. 2) Act, 2023 (Act 1094)
    • Revenue Administration Act, 2022 (Act 1086)

    Since 2022, the country’s inflation has been relatively high. Recent information from the Ghana Statistical Service (GSS) indicates a fall in the inflation rate from July to August.

    In August 2023, the year-on-year inflation rate saw a decrease to 40.1 percent, down from the 43.1 percent recorded in July 2033.

  • GUTA to protest against Customs’ ‘exorbitant charges’

    GUTA to protest against Customs’ ‘exorbitant charges’

    Members of the Ghana Union of Traders Association (GUTA) in the Ashanti region have threatened to stage a protest which would result in closure of shops within the area.

    This is in response to what they call harassment and discrimination by customs officers about the payment of “exorbitant charges,” which their members in other locations do not face.

    They claim that after clearing their goods at the port, they are forced to pay additional fees while transporting their goods to the Ashanti region. They go on to say that as a result of this, several of their members have been arrested and unfairly punished.

    Speaking to the media, the Ashanti regional GUTA chairman, Mr. Anthony Oppong noted that:

    “I am the third national GUTA president. We are in touch with all our members in the regions. None of them has complained about any arrests. Those people in Accra, after clearing their goods from Tema and we all come through the motorway, after Tetteh Quarshie, they go to Accra and we come to Kumasi. They are paying a lower transportation cost and we are paying a very high amount of money.

    “So, if the government wants those of us in the Ashanti region to stop doing business, they should tell us. In that case, those of us who have the capital to relocate to Accra will go to Accra and Kumasi will become empty and there will be no businesses here. This is because it looks like as if there is a deliberate policy to destroy businesses in the Ashanti region. If not that, they should come and tell us.”

    “This is because I have a forty-foot container and somebody taking it to Abossey Okai, nothing will happen to that person, but me, who is paying a higher transportation cost, has to contend with four custom barriers before I can get here (Kumasi). The worst part of it is that, in most cases, the container will go all the way to Suame Magazine and they will chase it and bring it to their yard. What is happening? So, we demand answers.

    The traders are expressing that despite their interactions with the appropriate authorities regarding the issue, the situation continues to endure. Lately, the Ashanti region has increasingly transformed into an unfavorable setting for conducting business.

    “The most annoying part of it and the most unfortunate part of it is that we have seen the regional minister on more than two occasions on this same issue. He gave us all assurances that he was going to call Accra and make sure he gets answers to what’s going on, but nothing has happened. We have seen the national security coordinator on numerous occasions, nothing has happened. We have visited the NIB director for the region, nothing has happened. The assistant commissioner since last January, we met three different assistant commissioners and put our case across and nothing is happening.”

    “We have gone all the way to Accra to meet the commissioner himself, Mr. Seidu, and he gave us the promise that they are going to do everything possible to stop this and make sure that they do the checks and make sure that those who do not pay the right duties are the ones that they take the money from, which we accept because we are not condoning that. In fact, they are duties they are supposed to pay. We want to pay the duties, but after paying the duties, we don’t see why this harassment and intimidation should go on,” Anthony Oppong, the Ashanti regional GUTA chairman, stated.

    “Tension is rising and if care is not taken, if nothing is done about it, from next week, something will happen here in Kumasi. We are planning to do a massive demonstration here to register our displeasure about what is going on. We cannot lose our capital because of what is going on, which we think the government is not even benefiting from. So, definitely, next week, we are holding a press conference, and after the press conference, if nothing is heard from the authorities, we are organizing a massive demonstration here in Kumasi. We will call for the closure of every shop and we will make sure we meet the right authorities and ensure that the right thing is done.”

  • Implementing tariff reviews was triggered by global economic challenges compelled – GPHA

    Implementing tariff reviews was triggered by global economic challenges compelled – GPHA

    The Ghana Ports and Harbours Authority (GPHA) has responded to concerns raised by the Ghana Union of Traders Association (GUTA) over the recently implemented revised tariffs.

    In a statement issued on Thursday, GPHA explained that the decision to revise the tariffs was a response to the current global economic challenges, including inflation and currency depreciation, which have increased its operational costs.

    GPHA clarified that the tariff adjustments were based on the outcome of a comparative port tariff study conducted in neighboring Ports of Lome and Abidjan.

    The aim was to ensure that Ghanaian ports remain competitive in terms of pricing and service quality.

    Addressing GUTA‘s protests against the tariff hikes, GPHA emphasized that like any other business, its operations are impacted by rising fuel, water, electricity, machinery, and equipment costs. The authority maintained that while tariff increments may have short-term effects on businesses, it is essential to strike a balance between cost recovery and providing quality services.

    GPHA expressed concern over low traffic volumes but stated that operating at a loss is not a viable solution, especially after investing millions of dollars in upgrading port infrastructure. The authority believes that a well-maintained and efficient port system will eventually contribute to reducing operational costs for businesses, improving productivity, and facilitating smoother trade operations.

    Regarding the decline in cargo volumes, GPHA’s charges account for only about 6% of the total cost of cargo clearance in the port. The authority is conducting a study to identify individual contributors and their share in the total cost to engage stakeholders and find possible solutions collaboratively.

    Below is the full statement issued by the GPHA.

  • GUTA bemoans increased port tariffs, calls it unacceptable

    GUTA bemoans increased port tariffs, calls it unacceptable

    The Ghana Union of Trader Associations (GUTA) is strongly opposing the significant rises in port tariffs declared by the Ghana Ports and Harbours Authority (GPHA).

    President of the Union,Dr. Joseph Obeng, expressed in a statement that this announcement has caught its members off guard.

    They have already been struggling due to the repercussions of heightened taxes and levies implemented recently.

    Additionally, he emphasized that the GPHA’s recent decision is not acceptable. It is expected to lead to hikes in shipping line fees, a situation that aggravates the prevailing economic difficulties faced by the nation.

    “We call on GPHA to suspend the implementation of these new tariffs, coming a year after the last increase, and engage stakeholders as the adverse impact of these increases would further compound the high cost of doing business,” the GUTA president stated.

    Read the full statement below:

    GHANA UNION OF TRADERS ASSOCIATION (GUTA)

    PRESS RELEASE

    INCREASED PORT TARIFFS NOT ACCEPTABLE

    2nd August, 2023 Accra

    The attention of the Ghana Union of Traders’ Association (GUTA) has been drawn to astronomical increases in Port Tariffs, that have been announced by the Ghana Ports and Harbours Authority (GPHA).

    The announcement comes as a surprise to our members, who continue to reel under the effects of the many taxes and levies that have been introduced in recent times, as well as the economic challenges plaguing the country.

    And also, at this time that the port authorities themselves have been complaining about low traffic at the country’s ports due to high cost of doing business, this decision would further influence increases in shipping line charges.

    We call on GPHA to suspend the implementation of these new tariffs, coming a year after the last increase, and engage stakeholders as the adverse impact of these increases would further compound the high cost of doing business.

      DR. JOSEPH OBENG
    President, GUTA

  • GUTA proposes scheme promoting Made-in-Ghana products

    GUTA proposes scheme promoting Made-in-Ghana products

    The Ghana Union Traders Association (GUTA) has presented a comprehensive proposal to the government, introducing the “tripod scheme” aimed at supporting and promoting the production and sale of made-in-Ghana goods. According to Joseph Obeng, the president of GUTA, this scheme involves the government allocating funds to industries, enabling them to offer supplier’s credit to distributors, which in turn supports the growth of the made-in-Ghana agenda.

    By implementing this scheme, distributors can purchase locally-produced goods without upfront payments, making it easier for them to sell these products to consumers. GUTA members have faced challenges in securing local supplier’s credit, leading them to look beyond Ghana’s borders, where they can access foreign manufacturers’ 90 to 180 days of supplier’s credit to import goods produced elsewhere into the country.

    Joseph Obeng likened the proposed tripod scheme to arrangements seen in EXIM Banks of other countries, where government-guaranteed loans are available to businesses exporting locally-produced goods to international markets. This not only facilitates businesses in obtaining the necessary financing to export their goods but also stimulates the sale of domestically-produced goods, thereby fostering economic growth.

    During a visit to Avnash Industries, known for producing Golden Drop and Lafia vegetable oils, as well as Royal Farmers’ rice, GUTA aimed to assess local production levels and explore avenues for sourcing goods from local manufacturers. However, Avnash Industries, like other local manufacturing companies, has faced challenges such as high production costs, competition from cheaper imported edible oils, and trade policies from neighboring countries restricting exports within the sub-region.

    Joseph Obeng emphasized that promoting made-in-Ghana goods requires practical and well-defined policies, not mere lip service, to enhance production and sales. He also suggested that the tripod scheme could be an effective way to utilize government-provided start-up capital, benefiting identifiable businesses sourcing locally-produced goods.

    In the face of challenges hindering exports to certain markets, both GUTA and Avnash Industries remain hopeful that pragmatic policies and collaborations between businesses and the government will create a conducive environment to boost the Ghanaian economy and encourage the consumption of locally-made products.

  • GUTA President stresses need for stability and business growth space ahead of Monday’s Mid-Year Budget review

    GUTA President stresses need for stability and business growth space ahead of Monday’s Mid-Year Budget review

    President of the Ghana Union of Traders’ Association (GUTA), Dr Joseph Obeng, has urged the government to establish a conducive environment that fosters the growth and success of businesses in the country.

    The mid-year budget is scheduled to be presented by Finance Minister Ken Ofori-Atta on Monday, July 31, 2023.

    During an interview on Joy FM’s Top Story on Friday, the GUTA President expressed his anticipation for the mid-year budget, emphasizing the essential requirements: stability and an enabling environment that allows the business community to flourish and expand.

    According to him, the cedi’s stability must be maintained at its current level if the rate of depreciation cannot be reduced.

    The cedi is currently traded at an average of GHC 11.50 to the American dollar in the retail market, whilst it went for about GHC10.97 on the interbank market.

    The cedi is, however, going for almost GHC12 at the forex bureaus.

    He also said he expects the hike in inflation reduced. This, according to him, is the main challenge in the country.

    He proffered solutions to ensure the inflation rate is reduced drastically as follows:

    • We must do so by lowering the cost of doing business. The cost of doing business is so high that we are completely uncompetitive in the subregion.
    • We must also lower the monetary policy rate to allow the lending rate to fall.
    • Manage our expenditure.
  • GUTA vows to ensure withdrawal of 3 new taxes

    GUTA vows to ensure withdrawal of 3 new taxes

    The quest by the business community to ensure government withdraws the three new taxes that were approved recently is not over yet, despite ongoing implementation by the Ghana Revenue Authority.

    The GRA has begun implementation of two of the new taxes this week after a series of engagements and agitations from sections of the public.

    But speaking to Joy Business after the swearing-in of new executives of the Abbosey Okai Spare Parts Dealers Association, Clement Amoateng said GUTA will continue to engage the government in order to get these taxes reviewed during the 2023 Mid-year Budget Review.

    “GUTA is still calling on the government to have an engagement so that we can offer some solutions that will raise more revenue than the taxes. But we are looking at the 2023 Mid-year Budget Review for the taxes to be reviewed”.

    “It is not too late for us as a trading community and we will still be pushing. But in the meantime, we have to pass on the cost to consumers because this is a business and every businessman or woman will do that”, he added.

    The three taxes – Growth and Sustainability Levy, Excise Duty Amendment Bill and Income Tax Amendment Act were introduced to replace some old taxes in the system.

    Despite a series of agitations from the business community and some stakeholders, the levies have been approved and implementation begun by the Ghana Revenue Authority.

    Meanwhile, the newly sworn-in Chairman of the Abossey Okai Spare Parts Dealers, Henry Okyere Jnr, has assured members it administration will offer the best for the association.

    Top on the agenda for the newly elected executives will be the move to de-congest the area to ease traffic flow for customers.

  • New tax laws: We are sorry for lack of consultation – Govt to GUTA

    New tax laws: We are sorry for lack of consultation – Govt to GUTA

    For failing to indulge the Ghana Union of Traders’ Association (GUTA), spokesperson on Governance and Security Palgrave Boakye-Danquah, has rendered an apology on behalf of government.

    Parliament on March 24, 2023, approved Excise Duty Amendment Bill 2022, Growth and Sustainability Levy Bill, 2022, Ghana Revenue Authority Bill 2022 and Income Tax Amendment Bill 2022, which have been assented to by President Akufo-Addo.

    This took place despite objections from stakeholders in the business industry such as GUTA.

    http://tigpost.co/new-tax-laws-prices-of-goods-services-to-go-up-businesses-to-collapse-gncci-warns/

    Speaking on TV3 on Wednesday, GUTA’s President Dr Joseph Obeng noted that his outfit feels disrespected as government failed to engage them to come to an agreement.

    Accepting the concerns raised by GUTA on the show, Mr Boakye-Danquah apologised to GUTA “for the lack of consultation”.

    He, however, disclosed that the bills are not new as being perceived by the stakeholders.

    “These bills that have been assented [to] by the President were already in place,” he stated.

    “These are amendments that have been made to these bills to further boost our economy.”

    http://tigpost.co/introduction-of-new-taxes-is-not-to-cripple-business-deputy-trade-minister/

    He said countries that have developed “have paid good taxes” and he has no doubt that the new taxes will do more good than harm.

  • Govt is not involved in present economic recovery – NDC’s Dr Ayeh

    Govt is not involved in present economic recovery – NDC’s Dr Ayeh

    A member of the Communications Team of the opposition National Democratic Congress (NDC), Dr Sammy Ayeh, has said that has no hand in current economic recovery of the country.

    Inflation for the month of March lowered to 45 percent from 52.8 percent in February, earning the praise of the Ghana Union of Traders’ Association (GUTA).

    The country is also nearing its negotiations with the International Monetary Fund (IMF) for the Executive Board’s approval of the $3 billion being sought.

    Speaking on TV3‘s New Day on Wednesday, April 19, Dr Ayeh said the marginal improvement in economic conditions in the country has nothing to do with any policies of the government.

    There is no ingenuity on the part of the government for what is being witnessed, he insisted.

    “They have no hand in it,” he added.

    He said no policy by government can take Ghana out of the current economic “mess” created by the Akufo-Addo-led government.

    Dr Ayeh cited how the President had been flying in luxurious jets at the expense of the tax payer while government expenditure ballooned within a short spate of time.

    He expressed doubt that the current alternative proposal to roll out another debt restructuring programme will yield any positive result.

  • You snubbed local producers, went to China to buy tiles – Angry GUTA President ‘shames’ Joe Wise

    You snubbed local producers, went to China to buy tiles – Angry GUTA President ‘shames’ Joe Wise

    President of the Ghana Union of Traders Association, Dr Joseph Obeng is seriously unhappy with comments made by First Deputy Speaker of Parliament, Joseph Osei-Owusu, regarding the passage of the three new tax laws

    Joseph Osei-Owusu, popularly known as Joe Wise said in a TV, on Monday, April 17, 2023, GUTA members have no moral authority to accused government of exploiting Ghanaians and business.

    But reacting to this in another interview with Oyerepa TV, on Tuesday, April 18, 2023, Dr Joseph Obeng said that the comment of the 1st deputy speaker is an insult to all traders in Ghana.

    He said that it is Joe Wise who has no morals because he imported tiles from China, when some are being produced in Ghana, at a time his government is seeking to encourage local production of goods.

    “On what grounds is he saying that we, the citizenry, have no moral rights? He is the deputy speaker so he has the moral right to talk. You are introducing taxes and we are saying they are killing us and you sit there and say we have no moral right.

    “Contrary to him saying we avoid taxes; we always pay our taxes and that is why the government always meets its domestic revenue targets. But the reason the revenue is not enough for the government is that people like Osei Owusu are paid ex-gratia. The taxes are also used to pay for his petrol, his security guards and his allowances.

    “He says we have no moral rights, what moral rights does he have? He went to China to buy tiles while we have two big factories in Ghana producing tiles and his government is saying we should patronize made-in-Ghana goods… He is not shamed of this,” he said in Twi.

    Dr Obeng added that the statement made by Joe Wise is similar to comments which led to traders being attacked during the days of the revolutions because traders were allegedly charging unfair prices and holding their products.

    Background

    Joe Wise, who is also the Bekwai MP, said that the GUTA does not have the moral right to complain about tax hikes, alleging that members of the association under-declare their products and also over-price their goods to gain huge profit margins.

    He made these remarks while reacting to concerns raised by GUTA over the introduction of the 3 revenue bills approved by parliament.

    According to the association, their members are already struggling with their businesses insisting, the 3 revenue measures will impose additional hardship on them.

    But in an interview with Kumasi-based Oyerepa TV, Joe Wise accused members of the association of dishonesty, insisting they (members of the GUTA) have been ripping off the Ghanaians.

    “GUTA should be fair to this country. They are always talking about taxes and yet they are over-exploiting Ghanaians and I am saying this without fear. I bought these tiles you see in China, some of the highest grades, you can get.

    “But I bought them at less than a fraction of what they (GUTA) sell on the market which is even the weakest in China. I also paid import duties. They are dishonest, they are under-declaring and inflating the prices to make huge profits on any product,” he said in Twi.

  • We are not here to collapse businesses – Deputy Trades Minister

    We are not here to collapse businesses – Deputy Trades Minister

    Deputy Minister for Trade and Industry Michael Okyere has emphasised that government has no intention of collapsing businesses.

    On the contrary, he says government will continue to engage businesses over their grievances relating to the new tax measures introduced by the government.

    The Ghana Union of Trader’s Association (GUTA) and the Ghana National Chamber of Commerce and Industry (GNCCI) argue that the revenue measures are counterproductive hence the need for government to reverse them.

    Speaking to Joy News’ Blessed Sogah on the sidelines of the African Continental Free Trade Area (AfCTA) Business Forum in Cape Town – South Africa, Michael Okyere Baafi says the intention of government is not to kill any businesses.

    “The intention of government is not to cripple or sabotage businesses. That’s not what government has in mind. Government’s interest is to encourage people to do business and also when they do businesses and when they grow, those businesses are supposed to pay more taxes to government so that we can be able to undertake projects like very good infrastructural projects like roads, other things that will benefit car users and users of social services in the country,” he said while announcing that a series of dialogues will continue in order to find common grounds with private sector.

    Touching on the opportunities provided by AfCFTA, Michael Baafi stressed that Ghanaian businesses must position themselves to leverage the wider market provided by the area.

    Africa’s private sector is currently in Cape Town, South Africa to participate in the 2023 AfCFTA Business Forum – the first one to be held in person.

    Convened by the AfCFTA Secretariat under the patronage of President Cyril Ramaphosa, the conference is scheduled to take place at the Cape Town International Convention Centre (CTICC) from 16 – 18 April 2023.

  • GUTA is exploiting Ghanaians – Joewise

    GUTA is exploiting Ghanaians – Joewise

    The first deputy speaker of parliament, Joseph Osei-Owusu is furious about what he claims is excessive exploitation of Ghanaians by GUTA members.

    According to the Bekwai MP, GUTA has lost the moral right to complain about tax hikes alleging that members of the association under-declare their products and also overprice their goods to gain huge profit margins.

    Joewise who is unhappy with the current development was reacting to concerns raised by GUTA over the introduction of the 3 revenue bills approved by parliament.

    According to the association, their members are already struggling with their businesses insisting, the 3 revenue measures will impose addition hardship on them.

    But in an interview with Kumasi-based Oyerepa TV, Joewise accused members of the association of dishonesty, insisting they (GUTA) are ripping of the Ghanaian consumer.

    “GUTA should be fair to this country. They are always taking about taxes and yet they are over-exploiting Ghanaians and I am saying this without fear. I bought these tiles you see in China, some of the highest grade you can get.

    But I bought less than a fraction of what they (GUTA) sell it on the market which even the weakest in China. I also payed import duties They are dishonest, they are under-declaring and inflating the prices to make huge profits on any product”. He told morning show host Kwesi Parker-Wilson.

    He further argued that Ghanaians are not paying enough taxes to cushion government realize its revenue target. Comparing Ghana to other African countries, the first Deputy Speaker noted that inspite of low tax collection in Ghana, 90% of African countries cannot match Ghana in terms of development.

    “If GUTA were to pay the right taxes on imported products, it should reflect in how much revenue we generate. Government runs a budget deficit every year and is compelled to borrow to finance the budget. So the truth of the matter is that we (as a nation) are not paying enough taxes.

    …90 percent of West Africa countries cannot match Ghana in terms of development and infrastructure yet they pay more taxes than us. And yet the educated ones among GUTA are always complaining about taxes”. he explained.

  • Businesses to suffer due to new taxes – GUTA

    Businesses to suffer due to new taxes – GUTA

    President of the Ghana Union of Traders Association (GUTA), Dr. Joseph Obeng, has voiced his displeasure over the three revenue tax revenue that has been approved by Parliament.

    Dr. Obeng bemoaned the implications of the taxes approval and said it will affect the rate of tax compliance by businesses because it will be a discouraging act to honour.

    He said Ghanaian businesses are particularly not competitive in the West African Sub-Region due to the high taxes that they have to pay.

    “Businesses are not competitive in the subregion and that is why some of us have to go and buy goods from Togo, so additional taxes will really affect our trade. It is going to make us pay a multiplicity of taxes and that is why we called it an obnoxious tax system.”

    Dr. Obeng further lamented the high commercial lending rate which he said is another big incentive for businesses in the country.

    Commercial lending rate is at 40 percent, and how do you want businesses to pay this and still have money to pay all these taxes? We are very disappointed at how we are producing our democracy here because it is all about imposition, this approval is going to impede our growth.”

    Parliament yesterday, March 31, passed the Income Tax Amendment Bill, Excise Duty Amendment Bill, and Growth and Sustainability Amendment Bill which collectively, are expected to generate approximately GH¢4 billion per year to supplement domestic revenue.

    Dr. Obeng also tasked the government to look at other sectors to raise revenue other than overly burdening local businesses with taxes.

    We should curtail the leakages at the Free Zones and warehousing to help raise the needed revenue.