Union Wants 3% VAT Flat Rate Reviewed


Ken Ofori Atta – Finance Minister

Wholesalers Importers Shops Owners Union of Ghana (WISUG) has urged the government to review the 3% Value Added Tax (VAT) Flat Rate without delay.

Members of WISUG said they will demonstrate against the government if it fails to do so within two weeks

They however added that they were ‘open’ to dialogue.

A statement issued in Accra and signed by Joseph Ablor, Chairman of WISUG, said although they agreed in principle with the government through then Finance Minister the late Kwadwo Baah-Wiredu to support the 3% VAT rate, the current regime appears different from what was agreed upon.

“The initial agreement was for the government to maintain the threshold of GH¢20,000 with the 17.5%, while all others that fall below the threshold are made to pay the 3%,” the statement claimed.

The statement further said that “the cumulative effect of this wholesale implementation is a hike in the price by the time the goods get to the final consumer,” adding that “the 3% will charge along the chain of distribution thus from the importer through to the distributor, wholesaler, shop owner, the retailer and finally to the consumer.”

It said that the union considers the current situation ‘very inimical’ to the growth of the local business because “the final consumer will have to pay about 18% in practical terms.”

The Union expressed its readiness to dialogue with the government to put the matter to a rest, saying “we believe strongly that this government is a listening government and most importantly business-friendly. And we know they will listen to us.”

“WISUG is reminding the government of its policy of making the local businessman the pivot of economic development and growth.”


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