What we need is an efficient tax collection system; not 'business killer' 15% VAT on electricity – GUTA president

Business & Finance GUTA President,  Dr. Joseph Obeng
FEB 5, 2024 LISTEN
GUTA President, Dr. Joseph Obeng

The president of the Ghana Union of Traders Association (GUTA), Dr. Joseph Obeng has called on government to improve its tax collection system if it wants to raise more revenue from taxes.

According to him, the Union cannot support government’s 15% Value Addition Tax (VAT) imposed on electricity as it will affect business operations in the country.

Speaking to Asempa FM on Monday, February 5, Dr. Joseph Obeng stressed that the 15% VAT on electricity is unacceptable because it will impede the growth of Ghanaian businesses.

He proposed that government must rather enhance its tax collection system to raise more revenue.

“I can tell you that if we improve the tax collection system, we will raise so much taxes and we will be shocked. The answer is not to introduce any new 15% VAT on electricity.

“Why can’t we modernize road tolls? That will be helpful for government to enhance revenue collection,” Dr. Joseph Obeng.

The GUTA president further admonished government to expand the tax net to cover more Ghanaians to support revenue mobilisation.

Meanwhile, reports indicate that cabinet led by President Nana Addo Dankwa Akufo-Addo has unanimously agreed to cancel the 15% VAT on electricity.

It is understood that an official announcement will come from government after ongoing talks on the cancellation with the International Monetary Fund (IMF) are concluded.

Eric Nana Yaw Kwafo
Eric Nana Yaw Kwafo

JournalistPage: EricNanaYawKwafo