GUTA President Urges Urgent VAT Reform to Cut Business Costs Ahead of 2025 Budget-GHANA

As someone following Ghana’s business climate closely, I found it striking that the President of the Ghana Union of Traders Association (GUTA), Dr. Joseph Obeng, is urgently calling for a review of the current Value Added Tax (VAT) structure. In a recent interview on Channel One TV, he pointed out that the cascading nature of VAT is one of the biggest contributors to the high cost of doing business in the country. His concern highlights how the tax system is hurting rather than helping businesses.

Dr. Obeng made it clear that VAT reform should be prioritized in the upcoming 2025 national budget. He urged the government not to delay in addressing this issue, especially since it directly affects business competitiveness and pricing. He believes that fixing the VAT structure could reduce operational costs and provide much-needed relief to traders and entrepreneurs across Ghana.

What’s even more concerning is that Finance Minister Dr. Cassiel Ato Forson had previously promised to form a task force to examine VAT concerns. However, according to Dr. Obeng, that commitment has yet to materialize. He expressed disappointment over the lack of stakeholder engagement, which he believes is crucial for creating a fair and effective tax system.

He’s right to push for immediate action—if nothing is done before the November budget, the same burdensome system will persist into the next fiscal year. Dr. Obeng is not just advocating for reform; he’s also calling on the government to honor its word and actively involve the business community in the process.

To me, this situation underscores a larger issue about accountability and responsiveness in economic policymaking. If businesses are to thrive and contribute meaningfully to Ghana’s economy, then tax reforms like this cannot be delayed. It’s time the government steps up and collaborates with stakeholders to create a VAT structure that truly supports growth.

Source: Citi newsroom