Business News of Thursday, 3 August 2017
The implementation of the 3% VAT Flat rate took off on the 1st of July this year.
Its implementation was however not received well by some business associations.
Chairman of the Ghana Electrical Dealers Association, Mr. Koranteng Asiamah said he is highly satisfied with the 3 percent VAT flat rate.
According to him, the new system allows for easy tabulation as compared to the 17.5 percent previously charged at the ports.
Another retailer, Mr. Asante who deals in refrigerators at the Opera Square couldn’t agree more.
In his view, the concerns of all the traders have been resolved by this.
“We the traders don’t really understand book keeping and input and output of products, so with this 3%, we all agree to it because it is very simple and easy to calculate” Mr. Koranteng Asiamah stated.
On the contrary, business associations such as the Food and Beverages Association of Ghana as well as the Importers and Exporters Association of Ghana have strongly opposed the implementation of the 3 percent flat VAT Rate.
They had earlier complained bitterly about its implementation and even threatened to increase prices of their goods should government go ahead with the implementation.
But, traders in the Accra Central District say they will only increase prices of goods if charges at the ports go up and the cedi performs poorly against major foreign currencies.
“Nothing has changed here. It is only if the harbor duty and the dollar rate is high, then the prices of goods will go up,” Mr. Asante argued.
The Chairman of the Ghana Electrical Dealers Association Mr. Koranteng Asiamah as well as an Executive Member of the Ghana Union of Traders Association (GUTA), Benjamin Yeboah believe importers and retailers who want the tax scrapped have fishy deals going on.
“They want to rob government that is what I think. For instance, someone will clear 5 containers a year; yet, they always file Nil, meaning they did not sell any goods. So all the goods that they bring where do they get the money? When it’s time to audit their shops too then they panic and it becomes an issue. Government should maintain this 3%.”