The Africa Centre for Tax Policy Research (ACTOR) has called for a structured dialogue between the Ghana Union of Traders Associations (GUTA), the Ministry of Finance, and the Ghana Revenue Authority (GRA) over the government’s new VAT reforms and the planned introduction of AI systems at the ports.

GUTA has expressed concerns that the new VAT threshold of GH¢750,000—which requires businesses exceeding it to pay 20% VAT—could create unfair competition, splitting the market between traders who charge VAT and those who do not.

In a statement issued on November 24, 2025, ACTOR described the threshold not as a sudden hike, but “a return to the long-standing real value of VAT entry points, considering Ghana’s volatile exchange rate.”

The think tank explained that VAT thresholds exist both in Ghana and internationally to protect small businesses while enabling tax authorities to focus on medium and large taxpayers, who contribute the bulk of revenue. They noted that the proposed GH¢750,000 threshold is roughly equivalent to USD 62,500, a value consistent with historical ranges. ACTOR’s analysis also showed that the price difference between VAT-registered and non-registered traders is minimal—around 1.5%.

ACTOR disagreed with GUTA’s suggestion that all traders should have the option to join the Modified Tax System (MTS), stressing that thresholds cannot be optional without risking system collapse. The MTS is designed specifically for micro and small businesses below the VAT threshold.

While defending the reform, ACTOR acknowledged traders’ concerns and urged the GRA to strengthen monitoring and turnover verification to prevent VAT evasion. The group concluded that collaboration among stakeholders is essential to ensure a smooth rollout, minimise market distortions, and build trust in the tax system.