The Ghana Union of Traders’ Associations (GUTA) has issued a strong ultimatum to the government and the Ghana Revenue Authority (GRA), calling for the immediate suspension and review of VAT Act 1151.
Speaking at a press conference on Wednesday, February 11, 2026, GUTA President Clement Boateng warned that the current implementation of the Act is placing heavy pressure on traders and could trigger widespread industrial action if their concerns are not addressed.
According to GUTA, many of its members fall below the input threshold, yet the structure of the VAT reform is increasing their tax burden and contributing to rising prices of goods.
The Association also argued that the complexity of the current VAT system makes it difficult for traders, particularly those in the informal sector to understand and comply with.
Mr Boateng emphasised that since the informal sector constitutes a large portion of Ghana’s economy, a simpler tax system is essential to encourage compliance and ease the burden on businesses.
“We are calling on the government to review the VAT Act 1151 urgently. The status quo must be restored to a 3% to 4% flat rate for the informal sector,” Boateng stated. “This is the only way to make compliance easy and realistic for the average trader.”
GUTA argues that the current standard rate system is administratively burdensome for small-scale importers and retailers, leading to unintended tax evasion and friction between traders and GRA officials.
Rather than hiking rates or complicating the process for existing taxpayers, GUTA suggests that the GRA focus on horizontal growth.
Mr. Boateng challenged the revenue authority to step out of their offices and onto the shop floors to ascertain the true situation on the ground.
”GRA should intensify trader registration and education to broaden the tax net and increase revenue,” Boateng urged. “Instead of over-taxing the few who are already compliant, let us find the thousands who are outside the system.”
The Union also suggested that the government should make VAT registration an attractive prospect rather than a purely punitive one.
“Introduce incentives for shops and retail outlets to mandatorily register and pay VAT. When you broaden the tax base through incentives, the burden on the individual trader lessens, and national revenue naturally climbs,” the GUTA President added.
