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, emphasising its potential as a significant revenue source.
According to the President of GUTA, Dr. Joseph Obeng, a well-restructured VAT system could play a major role in increasing Ghana’s Tax-to-GDP ratio beyond 20 percent.
Ghana’s current tax-to-GDP ratio lags behind many middle-income economies. However, experts believe that with the right structural adjustments, the country can surpass the 20 percent mark.
Speaking to GhanaWeb Business on the sidelines of the 2025 Deloitte Economic Dialogue on the 2025 budget on March 17, 2025, Dr. Obeng stressed that a simplified VAT system would greatly benefit the business community.
“For the VAT reforms, we are waiting for them. 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 make it more affordable and simplified, the government will be able to do its work, and our tax-to-GDP ratio can go beyond 20 percent,” he stated.
Dr. Obeng also commended the government for the 3 percent increase in the Growth and Sustainability Levy on mining companies.
He emphasised the need for the government to focus on the extractive sector, highlighting its role as a crucial revenue hub for the country.
The 2025 Deloitte Economic Dialogue brought together industry experts to analyze the implications of Ghana’s 2025 Budget and explore effective strategies for navigating the country’s evolving economic landscape.
The dialogue focused on key fiscal policies, tax reforms, and economic growth prospects, providing businesses and policymakers with insights to adapt to emerging challenges and opportunities.
SP/MA
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