Ghana’s Finance Minister Stresses Tax Compliance for Economic Growth

In Tema, Mr. Ken Ofori-Atta, the Minister of Finance, has emphasized the importance of fulfilling tax obligations, calling on the public to contribute to the nation’s economic growth through responsible tax payment. He highlighted those taxes play a critical role in funding government policies and developmental projects, which in turn enhance the standard of living for citizens.

According to Ghana News Agency, his remarks came during a visit to Sol Cement Manufacturing Company in Tema, which was recently shut down due to tax defaults. He expressed concern over the failure of such a significant company to meet its tax responsibilities, stating that operations would not resume until the taxes due to the state were paid. The finance minister described it as unlawful for companies to benefit from the country’s machinery, services, and resources, earn substantial profits, and then evade tax obligations.

The Minister commended the Ghana Revenue Authority’s (GRA) efforts in enforcing tax laws, recognizing these actions as vital for generating income and supporting economic development. He indicated that the Ministry of Finance would actively support GRA in tax collection endeavors and follow up on the Authority’s audit findings of companies.

Mr. Ofori-Atta called for increased vigilance among citizens to ensure compliance with tax responsibilities and advised companies engaging in tax evasion to change their practices.

Mr. Edward Gyamerah, Commissioner of the Domestic Tax Revenue Division of the GRA, reported that the factory had been closed for two weeks without any payment action from the company. Although the company proposed a payment plan, it did not meet the Authority’s satisfaction.

Gyamerah outlined that the company would be permitted to resume operations only after paying at least 40 percent of its tax liability and presenting a satisfactory plan to clear the remaining 60 percent. The liability, accumulated over three years, includes all types of taxes. He warned that if the company failed to arrange a satisfactory payment plan within 30 days, it could face auctioning to recover the owed taxes.

The Commissioner emphasized the necessity of tax compliance, stating that operating in a country without paying taxes is unacceptable. He also mentioned the significance of the Finance Minister’s presence at the closure, highlighting the grassroots realities of tax collection.

Amani Linbo Zhu, the General Manager of Sol Cement, appealed to the Authority for permission to resume operations to enable the company to pay off its debts.