Dr. Joseph Obeng is GUTA president
High inflation rate due to VAT flat rate, GUTA
VAT Flat rate imposes flat levy on businesses
VAT Flat rate is retrogressive,GUTA President
President of the Ghana Union of Traders (GUTA), Dr. Joseph Obeng has stated that the VAT flat rate imposed on businesses is retrogressive.
According to him, the union will push for a review of the tax during the mid-year budget review in July.
The VAT Flat rate is a flat levy imposed on businesses operating below five hundred thousand thresholds.
Businesses that operate above the threshold are made to pay 19.25 percent as the standard rate.
“We have already petitioned the Ministry of Finance. We expect the government to listen to us and address this VAT issue. It is affecting retailers in the country,” he said.
The GUTA president noted that the new system has resulted in the avoidance of tax payments by most retailers.
“If you go to the markets right now, there are many retailers who are above the ¢500,000 thresholds but are paying the VAT Flat rate. It is bad”.
“I have always said that this high inflation we are currently facing in the country is partly due to this policy,” he said.
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