Contrary to the fierce attempt by the Minority in Parliament and the Association of Ghana Industries (AGI) to get the Finance Minister to scrap the 3% flat VAT rate, leadership of the Ghana Union of Traders Association (GUTA) has rather declared its unflinching support to the ministry to proceed with the legislation and implementation of the rate.
President of GUTA,
Read full articleGeorge Ofori who addressed a press conference held in Accra explained that 3% VAT flat rate has been in existence for more than a decade, urging critics to desist from creating the impression that it is a new tax been introduced.
“People are creating the impression that it’s a new tax introduced by government. No, it’s not a new tax. It existed from Former President Kufour's administration until about a year and half ago when it was scrapped and replaced with the 17.5%. GUTA agitated for government to revert to the 3%”, he stated.
Members of GUTA are excited that the 3% VAT flat rate has been re-introduced, according to Mr. Ofori. The association is urging government to ensure full implementation as it posits that it will serve as a source of revenue for the country.
Mr. Ofori further stated that the cascading effect will be marginal.
“GUTA and the traders are happy that the 3% flat rate has been brought back. About the cascading effect, this system has been in existence for 10 years and did we see any cascading effect? No! We are urging government to make sure that every tom, dick and harry pays this rate", he stated.
Minority NDC MPs on the Finance Committee led by the Ranking Member, Hon. Cassiel Ato Forson teamed up with the leadership of AGI to brief the media over their displeasure of the introduction of the 3% flat VAT rate.
But their move was fiercely resisted by Majority members on the committee who had also wanted to court the media to hear the Chairman of the committee.
After going back and forth over the issue, the media was divided, with one part offering their platform to the Minority NDC MPs and AGI while the other group also offered theirs to the head of the committee.
Hon. Ato Forson commenting on the issue told journalists that the government was engaging in illegality with the implementation of the 3% flat VAT.
According to him, the law that was passed by Parliament did not capture importers and was therefore very surprised why the implementation of the law was affecting importers as well.
