Business News of 2014-01-13

GUTA to fight revenue collectors

The Ghana Union of Traders Association (GUTA) has stated that its members will resist attempts by revenue officials to harass them in the collection of Value Added Tax (VAT).

This follows agitation over what it describes as anomalies in the collection of VAT, which was increased from 12.5 percent to 15 percent in November 2013 in addition to a 2.5 percent National Health Insurance Levy totaling 17.5 percent. It came into force recently.

Proceeds from the VAT increment will be channeled into the infrastructure fund, which will take off in the first quarter of this year.

A presidential assent was given to the VAT Act 2013 (Act 870) on December 30, 2013 and its subsequent gazetting the following day.

According to GUTA, there is no parity in the charging and payment of VAT by traders.

Joseph Obeng, National Organizer told BUSINESS GUIDE that the traders had petitioned the Finance Ministry to review the collection of VAT.

However, Seth Terkper, Minister of Finance, advanced arguments to support the need to extend the tax net to include many businesses that were making huge profits but refused to honour their tax obligations.

According to him, companies that manufactured or supplied pharmaceutical products other than at the retail stage were to pay VAT.

Additionally, he said gymnasiums and spas, as well as domestic airlines and companies that dealt in haulage, have also been roped into the tax net.

GRA officials stated that there were a lot of gymnasiums and spas currently operating in the country, which could contribute to the development of the country by way of tax payments.

A couple of years ago, the GRA attempted to commit gymnasiums and spas to pay VAT but an operator battled the GRA in court over the issue.

Source: Daily Guide
« Previous | Next »
View Comments
Sponsor Links
News Categories
Site Menu