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GUTA backs VAT Flat Rate Policy

By
Christopher Arko, GNA

Accra, June 6 GNA – The Ghana Union of Traders
Association (GUTA) has stated that it fully supports the VAT Flat Rate Scheme
(VFRS), which is very good policy that would ensure fairness in the business
environment.

According to GUTA, the vast majority of
traders, wholesalers and retailers who are captured under the VFRS are in
support of the arrangement.

Barima Ofori Ameyaw, President of GUTA made
this known when leadership of the group petitioned the Parliamentary Committee
on Finance at Parliament House.

The Association of Ghana Industries (AGI) had
raised concerns on the implementation of the VFRS, which they claim would lead
to price increases.

The AGI subsequently petitioned Parliament
Committee on Finance and the Committee invited the various stakeholders
including the AGI, GUTA among others to come and make their contribution on the
issue.

While the Parliament Committee on Finance was
meeting the AGI, GUTA also came in with their petition to state their position
on the matter.  

Barima Ameyaw also stated that the group
consider VFRS a key intervention of government that would go a long way to even
help Ghanaians grow their businesses while simplifying the tax calculations.

He explained that the VFRS closed certain
loopholes that was exploited under 17.5 per cent VAT arrangement.

He said the claiming of VAT refunds after
input had been included in the price build-up is effectively dealt with under
the new scheme, adding that this ensured that all businesses would compete
fairly, giving no unfair advantage to wrongdoers.

Barima Ameyaw also stated that GUTA members
who would be the implementers of the VFRS did not agree that the new policy
would lead to price increases.

“To our understanding, this is just a matter
of calculations and if right will not result in any changes in prices as your
committee is being led to believe. This system has been with us for over a
decade and has never resulted in price increases,” he added.

He called on the Ghana Revenue Authority to
continue to engage with businesses for them to iron out all outstanding issues.

Barima Ameyaw stated that the VFRS created
parity in the trading environment.

He explained that thresholds were not enough
segregation points because in the market place, they did not exist.

“We all sell in the same market thus using
thresholds to segregate is no solution” he said.

Barima Ameyaw noted the previous system had
issues which led to low compliance since the customer was not under any
obligation to buy from VAT registered persons.

He said the VFRS should not be scrapped for
any reason because a lot of businesses that were captured under the scheme were
in support of it.

GNA

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