The Ashanti Regional branch of the Ghana Union of Traders Association (GUTA) has strongly opposed the newly introduced 20 percent Value Added Tax (VAT), describing it as burdensome and detrimental to the growth of businesses, particularly small and medium-scale enterprises.
The concerns were raised during the official inauguration of the Ashanti Regional Women’s Wing of GUTA, where traders gathered to deliberate on pressing issues affecting their operations and livelihoods.
Addressing the gathering, the Ashanti Regional Chairman of GUTA, Mr. Anthony Oppong, expressed deep dissatisfaction with the new VAT policy, calling for an immediate review and the restoration of the previous flat rate system. According to him, the current tax regime is placing excessive pressure on traders who are already grappling with high operational costs.
He explained that the introduction of the 20 percent VAT has significantly increased the cost of doing business, forcing many traders to either raise prices or absorb losses. “This new VAT rate is not sustainable for traders. It is affecting our margins and making it difficult for us to remain competitive,” he stated.
Mr. Oppong further noted that the situation is compounded by other existing challenges, including high transportation costs from Tema Harbour to Kumasi, multiple levies, and what he described as persistent harassment by some officials along key trade routes. These factors, he said, collectively threaten the survival of many businesses in the Ashanti Region.
He stressed that restoring the flat rate VAT system would not only ease the financial burden on traders but also promote compliance and stability within the trading sector. “We are appealing to the government to listen to our concerns and take swift action. The survival of many businesses depends on it,” he added.
On her part, Madam Pearl Opoku, National Coordinator of the GUTA Women’s Wing, underscored the importance of supporting traders, particularly women, who form a significant portion of the informal sector. She revealed that GUTA is working towards establishing a dedicated financial institution, popularly referred to as the “GUTA Bank,” to provide accessible credit facilities and financial support to its members.
She emphasized that such an initiative would empower traders to expand their businesses and withstand economic pressures, including tax-related challenges.
The inauguration of the Ashanti Regional Women’s Wing marks a significant step in strengthening the representation and participation of women within GUTA, ensuring their concerns are adequately addressed at both regional and national levels.
The Ashanti GUTA’s firm stance against the new VAT policy reflects growing concerns among traders across the country, as stakeholders continue to call for policies that foster business growth, reduce operational constraints, and enhance the overall competitiveness of Ghana’s trading sector.
