The Ghana Revenue Authority (GRA) has called for an emergency meeting with the leadership of the Abossey Okai spare parts dealers and other trader groups to address concerns surrounding the newly introduced 20 per cent Value Added Tax (VAT).
The move follows agitation by the traders, including threats of industrial action over the new tax regime.
Speaking to Joy Business in a phone interview, the Commissioner-General of the GRA, Anthony Kwasi Sarpong, said the revised VAT structure would ultimately benefit traders more than the previous system.
He expressed confidence that the planned engagement would help resolve the concerns raised. According to him, the meeting is aimed at fostering mutual understanding between the GRA and the traders.
“We have called our development partners, the traders, for an engagement so we have a mutual understanding, because we believe that when we all engage, there will be a better understanding of policies and the roles each party must play,” he said.
Mr Sarpong added that the Authority has also established a technical team to guide traders on how the new tax will be calculated and applied.
The GRA explained that under the former Flat Rate Scheme, traders paid an input VAT of 21.9 per cent on every purchase, which was not deductible.
However, under the new VAT regime, the 20 per cent input VAT is fully deductible, allowing traders to claim it back from the GRA, thereby reducing overall costs.
The Commissioner-General dismissed claims that the new VAT would increase the cost of doing business, stressing that the deductibility of the tax during filing would ease the burden on traders.
