Minister of Finance, Ken Ofori-Atta, has called upon the public to fulfill their tax obligations, emphasizing the importance of taxation in enabling the government to generate revenue for economic growth.
He stressed that paying taxes is a civic duty that every citizen must fulfill to contribute to the funding of policies and developmental projects aimed at improving the overall standard of living.
Mr. Ofori-Atta made this appeal during his visit to the Sol Cement Manufacturing Company in Tema, which had been temporarily shut down due to tax arrears.
He expressed concern over the significant company’s failure to meet its tax obligations to the government, highlighting that the company would not be allowed to resume operations until its outstanding taxes were settled.
Mr. Ofori-Atta asserted that it is unlawful for companies to utilize the country’s infrastructure, services, and resources to generate substantial profits while evading tax payments.
The Finance Minister commended the Ghana Revenue Authority (GRA) for its efforts in enforcing tax laws, underscoring the importance of these efforts in generating income for economic development.
He regarded this situation as a signal of increased vigilance and emphasized that it serves as a reminder to other companies to meet their tax responsibilities.
Mr. Ofori-Atta assured the GRA that the Ministry of Finance would provide support in their pursuit of effective tax collection.
“When the GRA brings up their audit of a company we will follow up and support them”, he said.
He further emphasized the need for citizens to stay watchful and support the compliance of taxpayers, while urging those engaged in such activities to cease their actions.
Mr. Edward Gyamerah, the Commissioner of the Domestic Tax Revenue Division at GRA, noted that it had been two weeks since the factory was closed, yet no payment had been made.
He explained that the company had suggested a payment plan, but the Authority was dissatisfied with the proposal.
Mr. Gyamerah outlined the conditions for the company to resume its operations, stating that they would be allowed to operate when they paid at least 40% of the outstanding liability and established a satisfactory arrangement for settling the remaining 60%.
The liability encompassed a three-year default, including all types of taxes.
He mentioned that the company had a 30-day window to provide a satisfactory arrangement for settling their liability. Additionally, he cautioned that a failure to fulfill their financial obligation would result in the auctioning of the company to recover the outstanding taxes.
“You cannot operate in a country and not pay tax, it is not done anywhere”, he said.
The Commissioner emphasized the significance of the Finance Minister personally witnessing the shutdown and gaining insight into the grassroots aspects of tax collection.
Amani Linbo Zhu, the General Manager of Sol Cement, appealed to the Authority for permission to resume their operations, citing the need to generate income to settle their debts.