GUTA President Warns New VAT Policy Will Distort Retail Market and Undermine Compliance

• GUTA President Joseph Obeng opposes the government’s new VAT restructuring, warning it will distort the retail market and undermine compliance.
• He argues the shift from a 4% flat rate to a 20% standard VAT, along with a higher exemption threshold, will create unfair competition and encourage under-reporting.
• The policy will result in some traders being VAT-exempt while others must charge 20%, disadvantaging VAT-registered sellers and driving customers to exempt traders.
• Obeng criticizes the split tax system and says universal application would be fairer.
• He warns that digital customs enforcement without reducing high duty rates will only increase defaults and goods seizures.

Source: dailyguidenetwork.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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