GUTA calls for removal of ‘nuisance taxes’ in anticipation of 2025 budget -

The Ghana Union of Traders’ Associations (GUTA) has called on the government to scrap what it describes as “nuisance taxes” that hinder business growth as it prepares to present the 2025 Budget Statement.

In a press release issued by Dr. Joseph Obeng, President, GUTA, has expressed optimism about the new administration’s promise to reduce the cost of doing business by streamlining the tax system and eliminating excessive levies.

“All nuisance taxes will be scrapped to considerably prune down the numerous taxes that impede business growth in the country,” the statement stated.

Dr. Obeng also urged the government to restructure the Value Added Tax (VAT) system to make it “more simplified, affordable, and uniform.”

“The Value Added Tax (VAT) will be restructured to be more simplified, affordable, and uniform”.

The association proposed that the Bank of Ghana’s dollar rate for duty payments at the ports should be pegged quarterly or bi-annually instead of the current weekly or biweekly adjustments.

“The weekly or biweekly use of the Bank of Ghana Dollar Rate to determine duty payment at the ports should be pegged quarterly or bi-annually for the purpose of clearing goods”.

On tax administration, GUTA recommended the introduction of an unconditional tax amnesty program to help expand the tax base, allowing businesses with irregularities to normalize their obligations while ensuring non-tax businesses are enrolled in the system.

“The government must also implement compliance measures, including effective education, monitoring, and enforcement,” Dr. Obeng added.

Furthermore, GUTA reiterated its expectation for the government to fulfill its manifesto promise of implementing a fixed tax system for spare parts as a pilot scheme, which could later be expanded to other imported commodities.

The association also called for policies to stabilize the local currency, reduce inflation and interest rates, and improve economic indicators. Additionally, it urged the government to scrutinize its expenditure to avoid waste and mismanagement of public funds.

“We believe that ensuring value for money in government spending will make tax payments more meaningful and beneficial to the economy,” Dr. Obeng emphasized.

Below is the release

GUTA LETTERHEAD SOFT(WORD).25th february, 2025 – Copy

Read also…