The Ghana Union of Traders Association (GUTA) is hoping Parliament insists on a reversal of increases in VAT before approving the 2023 budget.
Government is proposing a 2.5 percentage point increase in VAT that will take the current VAT rate to 21%.
The increase in VAT comes in the wake of protests in the Ashanti regional capital of Kumasi by traders who were unhappy with the decision of the Ghana Revenue Authority to place its personnel of their shops to check their sales in order to ensure the traders are paying their VAT in full.
Speaking Sena Nombo on the Gold Morning Conversation President of GUTA says the move took traders by surprise as they expected government to deal with their frustrations with the way VAT is structured.
According to him the move is detrimental to the growth of businesses which are already struggling to pay the existing VAT rate of 18.5%.
Watch the GUTA President’s interview with Sena Nombo