The Ghana Revenue Authority (GRA) has demanded that SOL Cement’s managers in Tema settle at least 40 percent of their outstanding liabilities before allowing the company to resume operations.
The GRA closed the cement factory two weeks ago due to GH¢700 million in tax defaults, including VAT.
The company was cited for VAT infractions, corporate income tax, and penalties after a tax audit by the GRA’s tax enforcement. It failed to pay taxes for more than two years and has been asked to settle the amount within 10 days.
Kwabena Gyambra, the Commissioner of Domestic Taxes, noted that the company’s proposed solutions in their discussions with the GRA have been unsatisfactory, resulting in the company remaining closed.
He explained, “We will reopen operations once they make a 40% settlement of their liabilities and provide a realistic plan for the remaining amount.”
To gain insights into the shutdown, the Finance Minister, Ken Ofori-Atta, visited the factory.
He stated that the GRA’s action marks the beginning of efforts to strengthen the country’s revenue but emphasized that further discussions with the company would be held to resolve the issue.
The Finance Minister stressed the difficulty companies face in meeting their tax obligations, especially given the significant volume of raw materials imported for cement production.
Currently, hundreds of workers are waiting for a resolution to return to work.
Meanwhile, Wan Heng Ghana Limited, producers of Sol Cement, had assured that they are committed to fulfilling their tax obligations to the country.
The company, in a statement issued on October 23, 2023, apologized and assured its stakeholders that it was committed to resolving the matter.
Source: Citinews
