Ghana traders demand flat VAT rate amid protests
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Accra — The Ghana Union of Traders' Associations (GUTA) urged the government on Wednesday to suspend implementation of the Value Added Tax Act 1151, saying the January 1, 2026 regime places complex 20% VAT burdens on informal traders and risks higher consumer prices and job losses. GUTA President Clement Boateng demanded reinstatement of a 3–4% flat rate, called for suspension of task-force enforcement, and proposed incentive-based registration to broaden compliance. The Ghana Revenue Authority has said the new rate will not raise consumer prices. Talks or review requests remain ongoing as of February. Based on 6 articles reviewed and supporting research.
More context
Timeline
- 1. GUTA submitted proposals opposing abolition of the flat-rate VAT before the 2026 budget.
- 2. The Value Added Tax Act 1151 took effect on January 1, 2026.
- 3. The Ghana Revenue Authority publicly defended the new VAT rate, saying it would not raise consumer prices.
- 4. On February 11, 2026, GUTA held a press conference demanding suspension and review of Act 1151.
- 5. GUTA threatened industrial action and proposed incentives to broaden VAT compliance while calling for stakeholder dialogue.
Sources
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