- If the Ghanaian tax administration wants taxpayers to comply with the introduced tax, it is necessary to structure the tax in a way that makes life easier for them.
Ghanaian traders demand improved VAT Structural Operations. The traders made this demand on the Value Added Tax, VAT administration in Ghana under the aegis of the Ghana Union of Traders Association (GUTA).
Leading the talks, the President of GUTA made this known recently when it called on the government to continuously seek ways to enhance tax compliance.
VAT Structural Operations: More on the Protest
This recommendation is also coming on the heels of the recent increase of the VAT rate from 12.5% to 15%.
According to him, enforcing the increment of the VAT rate without enhancing taxpayers’ compliance may not generate the intended results.
Effects of The Present State of VAT Laws
Dr. Joseph also pointed out that the way the VAT laws are currently structured makes life hard for business owners. He then cited the issue that previously went down in the Ashanti region between the traders and the tax officials as an example.
There was an altercation where traders in the Ashanti region refused to obey the Ghana Revenue Authority (GRA) officials, all as a result of the present nature of the VAT implementation system.
There have also been cases where traders embarked on demonstrations against the invigilation by the tax officers regarding the VAT and this can be blamed on non-compliance.
Dr. Joseph continued that the VAT structure needs to be simplified as its complex nature is hindering taxpayers’ compliance.
He also spoke against the GRA’s involvement in the VAT rate increment, stating that the key stakeholders should have been engaged before encouraging the government to take this step.
Most policies made by the government would easily get accepted by the citizens if they can just inform them before the introduction rather than suddenly establishing them and then expecting citizens to comply whether they like it or not.
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