The General Secretary of the Ghana Used Clothes Dealers Association, Atobrah Binkley, has urged the government to address persistent challenges in the trading sector during the upcoming mid-year budget review, particularly focusing on inconsistencies within the Value Added Tax (VAT) system and gaps in policy funding.
In an interview on Happy Morning Show with Kwadwo Sefah-Danquah on Happy 98.9FM, Mr. Binkley described the current VAT structure as both confusing and unfair. He noted that within the same market space, some traders are exempt, while others pay varying rates of 4% or 15%.
“It’s difficult to understand why the same category of traders are being taxed differently. There needs to be clarity and fairness in the system,” he said.
Mr. Binkley also criticized ongoing discrepancies in port charges and foreign exchange rates used for duty calculations. Despite the Bank of Ghana’s directive to apply the official exchange rate, he claimed some authorities continue to use arbitrary figures.
“They charge us based on whatever rate they choose, not the official one. This creates unnecessary financial pressure on traders,” he emphasized.
Touching on macroeconomic concerns, he acknowledged a reduction in inflation but argued that high policy rates continue to restrict access to capital for small businesses.
Commenting on the government’s 24-hour economy initiative, Mr. Binkley described the concept as promising but noted that it lacks clear implementation plans and financial backing.
“If someone wants to run a 24-hour business, where are the funds or incentives to support them? Government must make proper provisions,” he stated.
Despite these concerns, he commended the relative stability of the cedi over the past year, saying it has brought some pricing relief and predictability for traders.
With the mid-year budget scheduled for Thursday, July 24, 2025, the Used Clothes Dealers Association joins other trade groups in calling for a budget that delivers policy clarity, equitable taxation, and meaningful support for small businesses.
