GRA Chase 3 Companies to Retrieve GH¢247.7 million VAT

The Ghana Revenue Authority (GRA) is chasing three companies over GH¢247.7 million owed to the state as a result of unpaid Value Added Tax (VAT) since 2021.

The companies that owed the state includes Federated Commodities Limited, GH¢30.8 million, Millicom Ghana Ltd, GH¢12.9 million and the Produce Buying Company (PBC), GH¢203.9 million.

The GRA was hauled before the parliamentary committee to respond to some infractions discovered by the Auditor-General’s Report on VAT violations by some Ministries, Departments and Agencies (MDAs) for the year ending December 31, 2022.

The Commissioner of GRA, Rev. Dr Ammishaddai Owusu-Amoah led the team to parliament to respond to the invitation by the Public Accounts Committee (PAC) of Parliament on Tuesday, January 29, 2024.

Responding to some questions posed by members of the Committee, Mr. Edward Appenteng Gyamerah, the Commissioner in-charge of Domestic Tax and Revenue Division of the GRA, explained that the three companies were challenging the amount, which is part of GH¢361.68 million due to the state by 2,557 registered VAT traders who filed their VAT returns for the 2021 year of assessment.

According to him, the GRA had been able to recover part of the money, emphasizing that, the GRA had since retrieved GH¢60 million, GH¢25.1 in penalties, GH¢380,000 interest waived, while an amount of GH¢275.4 million yet to be retrieved.

Mr. Gyamerah said, out of this GH¢275 million outstanding, GH¢247.7 million is being litigated in court by PBC, Millicom Ghana Limited and Federated Commodities Limited.

“Mr. Chairman, “In relation to Federated Commodities and PBC, it has to do with VAT on haulage of cocoa, which they are contesting in court, and we are waiting for determination by the court on February 26, 2024. When the court determines that they are liable to pay, we will enforce the collections,” he added.

The Commissioner in-charge of Domestic Tax and Revenue Division told the Committee that, notwithstanding the challenges, the GRA use all legitimate and reasonable means within its mandate to retrieve the remaining GH¢247.7 million.

He told the committee, despite the rights of the companies to contest the tax obligation, the laws of the country are on the side of GRA and assured that the outstanding amount would be collected.