Dr Joseph Obeng, President of The Ghana Union of Traders Association (GUTA), has urged the government to establish fair and equitable taxation policies, citing disparities within the current system.
Speaking at a national stakeholders forum on tax equity in Accra, Dr Obeng highlighted concerns about varying tax rates and exemptions that impact businesses.
He emphasized the need for a restructured Value Added Tax (VAT) system, stating, “The tendency where some businesses pay a rate of 22 percent, others a rate of 4 percent, while others are exempted from paying because of not meeting the threshold of GHC200,000 worth of goods is unfair and unjustified.”
Dr Obeng expressed the adverse effects on businesses and consumers, noting, “Those paying 22 percent VAT and those paying 4 percent VAT stand at a disadvantage since their goods are likely to be priced high while those not paying any VAT at all sell at affordable prices and can make good sales.”
He urged the government to implement policies that foster tax compliance and reduce taxes to enhance productivity and competitiveness. Dr Obeng emphasized the inclusion of artisans, carpenters, mechanics, tailors, and electricians in the tax system to broaden revenue sources.
Furthermore, he called for expanding the tax net to include more businesses, stating, “We need to find innovative ways of bringing a lot more people to comply with their tax obligations.”
Dr Alex Ampaabeng, Senior Programmes Officer at the International Budget Partnership (IBP), emphasized the need for a more inclusive tax system. He urged the government to implement programs and systems promoting parity in tax payments, especially in the informal sector.
Mr Ampaabeng called on Civil Society Organizations (CSOs) to play a pivotal role in advising and engaging key stakeholders for fair and equitable taxation. He also advocated for effective digital taxation, suggesting collaboration with ride-hailing apps like Uber, Bolt, and Yango to ensure tax payments and cybersecurity.
The forum facilitated discussions on collaborative efforts to promote tax equity in Ghana, fostering civil society relationships, and identifying priority areas for CSOs to impact tax equity initiatives.