The Ghana Union of Traders Association (GUTA) has warned that the failure to suspend the implementation of VAT Act 1151 could spark industrial action, as it demands the immediate withdrawal of the Ghana Revenue Authority’s (GRA) newly formed revenue mobilisation task force.

At a press conference, GUTA President, Clement Boateng, expressed strong dissatisfaction with what he described as aggressive enforcement tactics being deployed by the GRA, warning that such actions risk provoking unnecessary confrontation with traders.

Addressing challenges surrounding the implementation of the new 20 per cent VAT regime, Mr. Boateng said traders are not opposed to paying taxes but will resist intimidation and coercive field operations.

“We demand that GRA halts the tax force that they have formed and engages in meaningful talks to address implementation challenges because we do not want any confrontation with the tax force. If pushed, we are prepared to face them squarely,” he stated.

The demand comes amid efforts by the GRA to close an estimated 60 per cent VAT compliance gap through its National VAT Compliance and Enforcement Team. However, GUTA argues that the VAT system is overly complex, involving technical calculations and cascading price effects that many informal sector traders lack the capacity to manage.

GUTA is therefore calling on government to intervene, stressing that compliance can be achieved through dialogue rather than force.

“We urge the government to step in and ensure that GRA works collaboratively with traders. This must be done urgently to protect traders, promote compliance and support Ghana’s development. We are confident our concerns will receive the attention they deserve, and we look forward to constructive engagement,” Mr. Boateng added.

Although the GUTA president has recently encouraged traders to reduce prices following the appreciation of the cedi, he cautioned that an unfavourable tax environment could quickly erase these gains.

Under VAT Act 1151, traders are transitioning from a 4 per cent flat rate to a standard 20 per cent VAT system—a move GUTA says is driving up operational costs for businesses and increasing prices for consumers.

The standoff comes at a critical time for the GRA, which, after missing its revenue mobilisation target in 2025, is expected to raise about GH¢230 billion in 2026 to support the national budget and ensure fiscal sustainability.