Nana Kwabena Peprah, the Greater Accra Regional Chairman of the Ghana Union of Traders (GUTA), has stated that the prices of goods have reduced drastically, allowing consumers to feel the direct benefits of gains made by the cedi, a reduction in inflation, and the recent review of the VAT system, among other government policies.
He noted that unlike previous years, where Ghanaians struggled to make purchases due to soaring costs, a new system has emerged where consumers can easily bargain and see prices reduced.
Speaking in an interview on Nyankonton Mu Nsem on Rainbow Radio 87.5FM, he stated that Ghanaians today have the opportunity to buy more while paying less.
He was responding to the major reforms to Ghana’s Value Added Tax (VAT) system which took effect as of January 1, 2026, under the new Value Added Tax Act, 2025 (Act 1151).
These changes aim to simplify the tax system, reduce the tax burden on small businesses, and improve overall compliance.
Commenting on the economic climate, he explained that the inflation rate has reduced significantly and the cedi has appreciated against the dollar and other major currencies.
Alongside these factors, the government has introduced a new VAT system.
He emphasised that because these changes have lowered the cost of goods, it is important for traders to allow the public to see the effects in their daily spending.
He further reflected that in the past, when consumers asked for price reductions, traders were often unable to grant them. However, today’s conditions allow Ghanaians to negotiate and receive lower prices.
He expressed his hope that this trend will be sustained in the long term and encouraged all traders to comply with these changes, noting that those who refuse to do so will find themselves at a disadvantage as consumers will naturally prefer to shop where prices have been lowered.
The new reforms include a reduced standard effective VAT rate of 20%, while the VAT Flat Rate Scheme (VFRS) has been abolished, requiring all registered businesses to transition to the standard rate system.
Additionally, the VAT registration threshold for businesses dealing in goods has been significantly raised to GH₵750,000 in annual turnover. Furthermore, the COVID-19 Health Recovery Levy has been removed, and the National Health Insurance Levy (NHIL) and Ghana Education Trust Fund (GETFund) levies are now part of the main VAT system, allowing for input tax credits.
By: Rainbowradioonline.com/Ghana
