February 10, 2025

GUTA Distance Itself from President’s Call for Government to Retain E-Levy

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GUTA dissociates itself from its president’s comment urging gov’t to retain E-levy

The Ghana Union of Traders’ Associations (GUTA) has distanced itself from the recent comments made by its President, Dr. Joseph Obeng, regarding the retention of the controversial E-Levy. Dr. Obeng had expressed his personal opinion that the government should keep the E-Levy in place to fund critical developmental initiatives, including financial support for women in trade and the establishment of the proposed Women’s Development Bank, as well as aiding small and medium-sized enterprises (SMEs). However, GUTA has quickly clarified that these views were solely those of Dr. Obeng and do not reflect the official stance of the association.

In a public statement issued by GUTA, the association firmly stated, “We wish to emphatically state herein that his opinion does not represent the stand of GUTA on the matter, though we respect his personal views.” This clarification came after Dr. Obeng’s remarks during an interview on JoyNews’ Newsdesk program, where he proposed that the government maintain the E-Levy. He argued that the revenue generated from the levy could be effectively utilized to support various developmental programs, such as providing financial aid to women in business and supporting SMEs. According to Dr. Obeng, rationalizing taxes, including the E-Levy, could ensure a consistent and reliable source of funding for these important initiatives.

Dr. Obeng’s statement comes at a time when the E-Levy has been a subject of considerable debate and opposition in the country. The levy, introduced by the previous New Patriotic Party (NPP) government, has faced significant resistance from many Ghanaians who believe it places an unfair financial burden on citizens. The opposition National Democratic Congress (NDC), led by former President John Dramani Mahama, has been particularly vocal in its criticism of the E-Levy. In fact, during his 2024 presidential campaign, Mahama pledged to abolish the levy, describing it as a regressive tax that exacerbates the economic challenges facing ordinary Ghanaians.

Despite the widespread criticism, Dr. Obeng’s comments reflected a different perspective, one that supports the continued implementation of the E-Levy as a means of funding essential development projects. However, GUTA, as an organization representing the interests of traders across the country, has made it clear that these personal views should not be taken as the official position of the association. The statement emphasized that GUTA is committed to advocating for the welfare of traders but maintains that decisions about how funds should be raised to support businesses and women in trade are ultimately the responsibility of the government.

The E-Levy issue continues to be a divisive topic in Ghanaian politics, with proponents arguing that the levy is a necessary tool for boosting government revenue, while critics assert that it disproportionately impacts the country’s already struggling population. The Ghanaian public remains divided, with many small business owners and everyday citizens feeling the strain of the tax. The debate also highlights broader concerns about economic hardship, fiscal policy, and the government’s approach to addressing the financial challenges faced by Ghanaians.

Although Dr. Obeng’s proposal to use the E-Levy proceeds for targeted developmental projects like the Women’s Development Bank and support for SMEs may resonate with some, GUTA’s clarification underscores the importance of distinguishing between personal opinions and the collective stance of the association. As GUTA represents a large body of traders across the country, it must remain neutral on political matters while advocating for policies that benefit its members.

GUTA’s response to Dr. Obeng’s comments serves as a reminder of the importance of clear communication within organizations, especially on contentious issues like taxation. While Dr. Obeng’s suggestion may reflect his personal views on how the government should fund critical programs, GUTA has made it clear that the official stance of the association is different. The clarification also emphasizes the ongoing debate around the E-Levy and its impact on the Ghanaian economy, particularly on small businesses and women in trade. The government now faces the challenge of balancing the need for revenue generation with the financial burdens on citizens, while also ensuring that critical developmental projects receive the necessary funding.

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