The Ghana Union of Traders’ Associations (GUTA) has expressed optimism about the upcoming 2025 Budget Statement, urging the government to prioritize policies that reduce the cost of doing business and foster a more conducive environment for trade and investment.
In a statement issued by its President, Dr. Joseph Obeng, GUTA highlighted key expectations for the budget, which is set to be presented by Finance Minister Dr. Cassiel Ato Forson on March 11, 2025.
Dr. Obeng emphasized the government’s commitment to streamlining the tax system and reducing taxes, duties, and levies as a positive step toward easing the burden on businesses. “We fervently expect that all nuisance taxes will be scrapped to significantly reduce the number of taxes that hinder business growth,” he stated. GUTA also called for a restructuring of the Value Added Tax (VAT) to make it simpler, more affordable, and uniform across sectors.
One of the major concerns raised by GUTA is the frequent adjustment of the Bank of Ghana’s dollar rate, which is used to calculate duty payments at the ports. The association proposed that the rate be pegged quarterly or bi-annually to provide more predictability for importers and reduce the financial strain caused by constant fluctuations.
To further support businesses, GUTA urged the government to introduce unconditional tax amnesty programs as a temporary measure to broaden the tax base. This initiative would allow businesses with tax irregularities to regularize their obligations while encouraging non-tax-paying enterprises to join the tax net. “Compliance measures, including effective education, monitoring, and enforcement, should be adapted to ensure fairness and transparency,” Dr. Obeng added.
GUTA also highlighted the need for the government to fulfill its promise of implementing a fixed tax system for spare parts, as outlined in its manifesto. The association suggested that this system be piloted for spare parts before being expanded to other imported commodities.
Beyond tax reforms, GUTA stressed the importance of macroeconomic stability, calling for policies that stabilize the local currency, reduce inflation and interest rates, and improve other key economic indicators. “The budget should prioritize measures that create a stable economic environment, which is essential for business growth and investor confidence,” Dr. Obeng noted.
The association also called for stricter scrutiny of government expenditure to prevent waste and misappropriation of public funds. “Ensuring value for money in public spending will make tax payments more meaningful and build trust between the government and the business community,” the statement read.
The 2025 Budget Statement, which follows the National Economic Dialogue scheduled for March 3–4, 2025, is expected to outline the government’s policy proposals to reset and transform Ghana’s economy. According to Felix Kwakye Ofosu, Minister for Government Communications, the budget will reflect recommendations from the dialogue and align with the government’s broader vision for economic revitalization.
As businesses await the budget’s unveiling, GUTA’s recommendations underscore the critical role of private sector growth in driving Ghana’s economic recovery. A business-friendly budget, they argue, is not just a win for traders but a necessary step toward achieving sustainable development and prosperity for all.
