GUTA calls for tax cuts, currency stability, and cost reductions in 2025 budget

The Ghana Union of Traders’ Associations (GUTA) has expressed cautious optimism ahead of the government’s 2025 Budget Statement, emphasising the need for significant reforms to reduce the cost of doing business.

The Association welcomed assurances from the new administration to streamline the tax system and cut down taxes, duties, and levies, which have long been a burden on the trading community.

“The assurance to ease the business climate through tax reforms is a step in the right direction,” GUTA President Dr. Joseph Obeng stated.

“Our expectations are clear, and we believe this budget is an opportunity to address long-standing challenges traders face.”

GUTA has outlined key expectations from the budget, starting with the elimination of what it terms “nuisance taxes.”

The Association believes that scrapping redundant taxes will significantly relieve businesses, promote growth, and foster a more competitive market environment.

High on the list of demands is the restructuring of the Value Added Tax (VAT) to make it simpler, more affordable, and uniform across sectors.

“A reformed VAT system will ease compliance burdens and make operations more predictable for businesses,” Dr Obeng noted.

Addressing concerns over the volatility of the Ghana cedi, GUTA has proposed that the Bank of Ghana’s dollar rate—used to determine import duty payments—be fixed quarterly or bi-annually instead of the current weekly or biweekly adjustments.

“Frequent changes in the dollar rate destabilise business planning. Pegging it quarterly will bring much-needed stability,” the Association emphasized.

GUTA is also advocating for the introduction of unconditional tax amnesty programs to broaden the tax base.

Such initiatives, the Association believes, will encourage non-compliant businesses to enter the tax net and allow companies with irregularities to settle obligations without harsh penalties.

“This is not just about revenue mobilization—it’s about giving businesses breathing space to recover and grow,” Dr. Obeng explained.

On compliance, GUTA is urging the government to adopt effective education, monitoring, and enforcement strategies to ensure fair application of tax laws.

Traders are also looking forward to the implementation of a fixed duty system for spare parts, a promise highlighted in the governing party’s manifesto.

GUTA believes this pilot project could eventually be extended to cover all imported commodities, further stabilizing import costs.

Economic stability remains a top priority for the trading community.

GUTA is calling for policies that will ensure the stability of the local currency, reduce inflation and interest rates, and improve key economic indicators.

“A stable economic environment is crucial for business predictability and growth,” Dr Obeng stressed.

Beyond revenue measures, the Association is urging the government to scrutinize and evaluate its expenditures to prevent waste and mismanagement of public funds.

“We pay taxes to see meaningful development. Value for money should be a guiding principle in public spending,” Dr Obeng asserted.

Source: Myjoyonline.com