The Ghana Union of Traders’ Associations (GUTA) has intensified its call for comprehensive reforms in the 2025 Budget, urging the government to prioritize measures that will reduce the cost of doing business and create a more predictable economic environment.
With high taxes, unstable exchange rates, and compliance challenges burdening traders, GUTA sees the upcoming budget as a crucial opportunity to implement changes that will stimulate business growth and improve competitiveness.
Tax Cuts and VAT Reform a Priority
One of the Association’s primary demands is the removal of what it describes as “nuisance taxes,” which it argues stifle business expansion and make Ghana’s market less competitive. GUTA believes scrapping redundant levies will provide relief to traders and encourage investment.
In addition, the group is pushing for a major restructuring of the Value Added Tax (VAT) system to make it more uniform and less complicated across industries. GUTA President, Dr. Joseph Obeng, emphasized that a simplified VAT structure would ease compliance burdens and allow businesses to plan better.
“A reformed VAT system will make it easier for traders to meet their tax obligations while reducing the unpredictability that affects operations,” Dr. Obeng noted.
Stabilizing the Exchange Rate for Imports
Another key concern for GUTA is the frequent fluctuation of the Ghana cedi against the US dollar, which affects import duties and disrupts business planning. To address this, the Association is proposing that the Bank of Ghana’s exchange rate for duty payments be fixed on a quarterly or bi-annual basis instead of the current weekly or biweekly adjustments.
“Frequent changes in the exchange rate create uncertainty for traders. A fixed rate for at least three months would help businesses plan and stabilize prices,” the Association argued.
Tax Amnesty to Boost Compliance
GUTA is also advocating for an unconditional tax amnesty program to encourage more businesses to enter the formal tax system. The Association believes that a well-structured amnesty initiative will expand the tax base while giving struggling businesses a chance to meet their obligations without punitive measures.
“This is not just about increasing government revenue; it’s about creating an environment where businesses can recover and grow,” Dr. Obeng explained.
Fixing Import Duties for Spare Parts
A major policy expectation from traders is the implementation of a fixed duty system for spare parts—an initiative that was highlighted in the ruling party’s manifesto. GUTA believes this pilot project could eventually be extended to other imported goods, ensuring stability in import costs and reducing arbitrary pricing.
Call for Responsible Government Spending
Beyond revenue mobilization, GUTA is urging the government to focus on prudent spending and prevent waste. The Association stresses that tax revenues should be utilized efficiently to ensure meaningful development.
“We expect the government to manage public funds with accountability. Traders pay taxes expecting to see improvements in infrastructure and services,” Dr. Obeng stated.
As the government prepares to present the 2025 Budget, GUTA remains hopeful that these demands will be reflected in policy decisions. The Association believes that easing the tax burden, stabilizing the exchange rate, and ensuring responsible governance will be critical to fostering a thriving business environment in Ghana.
