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Ahead of the government’s 2025 Budget Statement, the Ghana Union of Traders’ Associations (GUTA) has voiced cautious optimism while highlighting the necessity of substantial reforms to lower the cost of doing business.
The Association applauded the new administration’s promises to simplify the tax code and reduce levies, taxes, and duties that have long burdened the trading community.
“The assurance to ease the business climate through tax reforms is a step in the right direction,” GUTA President Dr. Joseph Obeng stated.
“Our expectations are clear, and we believe this budget is an opportunity to address long-standing challenges traders face.”
The removal of what it refers to as “nuisance taxes” is the first of GUTA’s main demands for the budget.
According to the Association, eliminating unnecessary taxes will greatly ease business burdens, encourage expansion, and create a more competitive marketplace.
Restructuring the Value Added Tax (VAT) to make it easier, more inexpensive, and consistent across industries is at the top of the list of requests.
“A reformed VAT system will ease compliance burdens and make operations more predictable for businesses,” Dr Obeng noted.
GUTA has suggested that the Bank of Ghana’s dollar rate, which is currently adjusted weekly or biweekly to determine import duty payments, be fixed quarterly or biannually in order to address concerns about the volatility of the Ghana cedi.
“Business planning becomes unstable when the dollar rate fluctuates frequently. It will provide much-needed stability if it is pegged quarterly, the Association stressed.
In order to increase the size of the tax base, GUTA is also supporting the implementation of unconditional tax amnesty initiatives.
According to the Association, such measures will enable enterprises with irregularities to satisfy their duties without facing severe fines and will also encourage non-compliant corporations to come under the tax net.
“This is not just about revenue mobilization—it’s about giving businesses breathing space to recover and grow,” Dr. Obeng explained.
In order to guarantee that tax laws are applied fairly, GUTA is advising the government to implement efficient monitoring, education, and enforcement measures.
A fixed duty system for spare parts, which was promised in the governing party’s campaign, is another item that traders are anticipating.
In order to further stabilize import prices, GUTA thinks that this pilot project may eventually be expanded to include all imported items.
The trading community continues to place a high premium on economic stability.
GUTA is advocating for measures that will lower interest rates and inflation, maintain the stability of the local currency, and enhance important economic metrics.
“A stable economic environment is crucial for business predictability and growth,” Dr Obeng stressed.
Beyond revenue measures, the Association is urging the government to scrutinize and evaluate its expenditures to prevent waste and mismanagement of public funds.
“We pay taxes to see meaningful development. Value for money should be a guiding principle in public spending,” Dr Obeng added.
Source: Ghanatodayonline.com
