Dr. Joseph Obeng, President of the Ghana Union of Traders Association (GUTA), has called for an immediate overhaul of Ghana’s Value Added Tax (VAT) system, citing its cascading nature as a key contributor to rising business costs.
Speaking on The Point of View with Bernard Avle on Channel One TV on Wednesday, May 14, Dr. Obeng emphasized that VAT reform should be a top priority for the government ahead of the 2025 national budget in November.
“We need to review and restructure the VAT system,” he stated. “Its cascading effect significantly inflates business costs and doesn’t benefit businesses.”
He also disclosed that Finance Minister Dr. Cassiel Ato Forson had previously pledged to create a task force to address VAT concerns. However, Dr. Obeng expressed frustration that no progress has been made or consultations held with stakeholders.
“The Finance Minister promised a task force would be set up, but we’ve had no meetings or opportunities to contribute. They need to act quickly before the November 2025 budget.”
Dr. Obeng underscored the urgency of stakeholder engagement and swift action to redesign the tax framework in a way that supports businesses and strengthens economic resilience.
