The Ghana Union of Traders Association (GUTA) has urged the government to restore the 4% flat Value Added Tax (VAT) rate, arguing that a simplified system would improve compliance, particularly among traders in the informal sector.

According to the association, the current 20% VAT regime is too complex for many businesses to understand and calculate, making implementation challenging.

The call comes amid assurances from the Ghana Revenue Authority (GRA) that the new VAT rate will not increase consumer prices or disrupt market activity.

Speaking at a press conference in Accra, GUTA President Clement Boateng appealed to the GRA to suspend what he described as harassment by its task force and instead engage in dialogue with stakeholders.

“Traders, especially in the informal sector, struggle with complex computation, lack the necessary expertise and cannot afford to hire VAT professionals to do the calculations and the arithmetic for them. This leads to unintentional non-compliance, penalties and a negative impact on business sustainability,” he said.

GUTA is calling for an urgent review of Act 1151, proposing a return to a simplified 3% to 4% flat VAT system for informal sector operators to make compliance easier.