President of the Ghana Union of Traders Association (GUTA),Dr. Joseph Obeng, has urged the government to prioritize a review of Ghana’s Value Added Tax (VAT) structure, citing its cascading effect as a major contributor to high business costs.
Dr. Obeng emphasized the need for VAT reforms ahead of the 2025 national budget presentation in November.
“We have to revise the VAT, we have to restructure. The cascading effect of VAT is one major factor in costing. And it is not affecting businesses positively”.
He also expressed frustration over the lack of engagement from the Finance Ministry, revealing that Finance Minister Dr. Cassiel Ato Forson had previously assured stakeholders that a task force would be formed to address VAT-related concerns. However, no such discussions have taken place.
“The finance minister, Dr. Ato Forson, promised they were going to form a task force to work on this, but we haven’t gotten any meeting to that effect for us to make our inputs. They should fast-track before the November 2025 budget”.
He stressed the importance of involving stakeholders in the restructuring process to ensure that the tax system supports business growth and economic stability.
