Ten state institutions, including the Electricity Company of Ghana (ECG) and the Ghana Airports Company Limited (GACL), owe the Ghana Revenue Authority (GRA) over GH¢1 billion in taxes.
This was disclosed by officials of the GRA when they appeared at the public accounts committee sitting on Monday, July 29.
Although some of these entities have indicated their intentions to settle their debts, the committee raised concerns over redundant ones like the Tema Oil Refinery (TOR).
A GRA official noted that some state agencies are facing cash flow challenges, which could be contributing to their inability to fulfil their tax obligations.
“GACL and Graphic Corporation currently are having cash flow challenges. They’ve indicated to us that we need to give them a moratorium to be able to come back to us. So, for them, they are prepared to pay. Once their cash flow improves.”
The Minister of State at the Finance Ministry, Abena Osei Asare, suggested that the option of writing off debts should be considered for companies that are unlikely to pay their taxes.
“Mr Chairman we have done this before. We brought it to parliament; we went through a process [and] brought some to parliament for parliament to write it off.
“If it becomes necessary after all avenues to collect these monies have failed, we will go through that process and then come to parliament for permission to do that,” she suggested.