The Joint Private Sector Business Consultative Forum will be meeting with the Ministry of Finance today, to seek a reversal of the 17.5 % VAT Flat Rate Scheme imposed on traders.
[contextly_sidebar id=”sZ9OgcsiQPsFL35fRHXifQTORUPJZca0″]According to the association, government has instigated all registered traders to pay 17.5 % VAT instead of the normal 3%.
A development, it believes is unjustified hence, its call for a withdrawal of the policy.
Speaking to Citi Business News, President of Ghana Union of Traders Associaion (GUTA), George Ofori ,maintained that government will be doing harm to traders should it continue with the policy.
‘‘We were not actually informed, all of a sudden, we got to know that it has been taken back to the standard rate of seventeen and half percent VAT rate. This seventeen and half percent can be a component of input and output but with the flat rate scheme, it is a simplified system that does not have the input and output system. So you pay that one and that ends it because you are not getting any input,”
“So we thought that since it was fashioned up for the informal sector even if for nothing at all if there was going to be any changes, we could have been informed but that was not to be.” George Ofori stressed.
Meanwhile, authorities have advised traders operating the 3% VAT Flat Rate Scheme to continue to file their monthly 3% VAT Flat Rate returns with the Ghana Revenue Authority until an agreement is met.
The business union has also cautioned GRA Officers to desist from harassing traders who approach them willing to pay the 3% tax
‘‘Instead of us saying that our members should not pay, we felt that whilst negotiating, the business community, vis-a -vis the informal sector, should keep on paying the 3%. If they go and the GRA staff decides not to take it, well, they have done what they have to do as their civil responsibility.” George Ofori added.
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By: Jessica Ayorkor Aryee/citibusinessnews.com/Ghana