President of GUTA, Dr. Joseph Obeng
The Ghana Union of Traders Association (GUTA) is urging the government to properly restructure the Value Added Tax (VAT) system, highlighting its potential as a goldmine for the government.
According to president of the Union, Dr. Joseph Obeng, a well-restructured VAT system would significantly play a major role in increasing Ghana’s Tax-to-GDP beyond 20 percent.
Ghana’s current tax-to-GDP ratio lags behind many middle-income economies. However, experts believe that the country can increase its tax-to-GDP ratio to more than 20% with the right structural adjustments.
Speaking to GhanaWeb Business on the sidelines of the 2025 Deloitte Economic Dialogue on the 2025 budget on March 17 2025, the GUTA president said a more simplified VAT system would go a long way to help the business community.
“For the VAT reforms, we are waiting for it. We have a lot to say. If you are able to restructure the VAT, it is a goldmine for the government. Our problem has been the structure. If you are able to make it more affordable and simplified, government would be able to do its work, and our tax-to-GDP can go beyond 20 percent,” he stated
Dr. Obeng also praised the government for the 3 percent increase in the Growth and Sustainability levy on mining companies.
He said the government must pay attention to the extractive sector as it also serves as a revenue hub for the country.
SP/MA
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