GRA to support struggling companies in recovery efforts, prioritizing economic continuity
The GRA has set an ambitious revenue target of GH¢106 billion, with the Customs Division expected to collect GH¢28.5 billion in 2023. A total of 93 businesses in the capital have been identified as targets for enforcement and compliance this year.
The Commissioner-General of the Ghana Revenue Authority (GRA), Rev. Dr. Ammishaddai Owusu-Amoah, has declared the authority’s commitment to assisting financially distressed companies in their recovery processes. While emphasizing the GRA’s preparedness to enforce compliance measures dictated by law, he underscored the primary objective of fostering the revival of companies and ensuring uninterrupted production, particularly in light of the economic challenges faced in recent years.
During a working visit to B5 Plus Limited, a prominent steel manufacturer in Tema, Rev. Dr. Owusu-Amoah stated, “Whether small or large, we are ready to ensure the collection of taxes in full. But at the same time, we are also concerned that production should continue and people not be laid off.”
The announcement comes on the heels of GRA’s recent closure of Sol Cement, a Chinese cement manufacturing firm, due to its failure to meet tax obligations exceeding GH¢700 million. Additionally, the authority uncovered VAT infractions at 12 businesses in Accra in August.
Rev. Dr. Owusu-Amoah reiterated the GRA’s focus on supporting distressed companies for a turnaround, emphasizing that closures are considered a last resort.
The GRA has set an ambitious revenue target of GH¢106 billion, with the Customs Division expected to collect GH¢28.5 billion in 2023. A total of 93 businesses in the capital have been identified as targets for enforcement and compliance this year.
The success story of United Steel Company Limited, acquired by B5 Plus Limited in 2020, serves as a testament to the GRA’s commitment to facilitating corporate recovery. The Commissioner-General highlighted the company’s outstanding tax liability, which was fully paid in 2023 after the acquisition. B5 Plus Limited has since invested over US$35 million in revitalizing the factory, with plans for an additional US$10 million investment for expansion over the next two years.
Mukesh Thakwani, CEO of B5 Plus Limited, expressed optimism about the company’s future, praising the domestic investment climate and citing plans for further expansion to leverage the opportunities presented by the African Continental Free Trade Area (AfCFTA). The company, currently employing 420 workers, anticipates increasing its workforce as additional product lines are introduced to tap into the broader African market.
Source:norvanreports
