The President of the Ghana Union of Traders Association (GUTA), Dr. Joseph Obeng, is calling on the government to urgently review the country’s Value Added Tax (VAT) structure, warning that its current form is placing a significant burden on businesses.

Speaking during an interview on Channel One TV on Wednesday, May 14, Dr. Obeng described the cascading effect of VAT as a key contributor to high operational costs for businesses across the country.

“We have to revise the VAT; we have to restructure. The cascading effect of VAT is one major factor in costing, and it is not benefiting businesses,” he said.

He urged the government to make VAT reform a top priority as preparations begin for the 2025 national budget, expected to be presented in November.

Dr. Obeng also disclosed that Finance Minister Dr. Cassiel Ato Forson had earlier promised to establish a task force to address concerns surrounding the VAT system. However, he expressed disappointment over the lack of follow-through.

“The finance minister, Dr. Ato Forson, promised they were going to form a task force to work on this, but we haven’t had any meeting to make our inputs. They should fast-track the process before the November 2025 budget,” he added.

The GUTA President emphasized the need for stakeholder engagement in shaping tax policies that promote business growth and economic stability.

He noted that without urgent intervention, the current VAT structure could continue to undermine the competitiveness and survival of many local businesses.