The Ghana Revenue Authority (GRA) has disclosed a significant tax deficit, revealing that nine institutions owe the state a combined GH¢47 million in unpaid taxes as of the end of 2023. This revelation came during a hearing before the Public Accounts Committee (PAC) on August 25, 2025, where the Commissioner General, Anthony Kwasi Sarpong, outlined the GRA’s ongoing efforts to recover these outstanding amounts. The largest defaulter is the Graphic Communications Group Limited, with a debt of GH¢3.4 million, followed by GIHOC Distilleries at GH¢2.1 million and the Tema Oil Refinery (TOR) at GH¢136,000. Many of the indebted institutions, predominantly state-owned enterprises, attribute their non-compliance to cash flow challenges, a recurring justification cited for their inability to meet their tax obligations. This escalating tax debt presents a critical challenge to the government’s revenue generation efforts and emphasizes the need for more stringent enforcement mechanisms.
The GRA’s disclosure underscores a broader issue of tax compliance within Ghana, particularly among state-owned enterprises. While these entities are expected to contribute significantly to national revenue, their consistent failure to meet tax obligations raises serious concerns about their financial management and the effectiveness of existing oversight mechanisms. The recurring excuse of cash flow difficulties warrants further investigation to determine the underlying causes and assess whether these difficulties are genuine or indicative of deeper systemic issues within these organizations. The GRA must adopt a more proactive approach, moving beyond accepting explanations at face value and delving into the financial practices of these institutions to ensure transparency and accountability.
Adding to the complexity of the tax deficit is the significant amount of unpaid Value Added Tax (VAT) arrears, totaling GH¢116 million, as confirmed by the Commissioner for Domestic Tax Revenue, Edward Apenteng Gyamerah. This substantial figure further exacerbates the revenue shortfall and highlights the pervasive challenge of VAT collection. The GRA must implement more robust strategies to address this issue, including strengthening its audit processes and enhancing its mechanisms for tracking and enforcing VAT compliance. This requires a comprehensive approach that considers the specific challenges faced by different sectors and tailors enforcement strategies accordingly.
The GRA’s commitment to intensifying efforts to recover both the direct tax arrears and the VAT arrears is a positive step towards ensuring fiscal stability. Commissioner General Sarpong’s assurance to the PAC signifies the Authority’s recognition of the urgency and importance of addressing this issue. However, the GRA must move beyond assurances and implement concrete actions that demonstrate a genuine commitment to enforcing compliance. This includes not only pursuing legal avenues for recovery but also implementing preventative measures to mitigate future non-compliance.
To effectively address the persistent issue of tax arrears, the GRA must adopt a multi-faceted approach that combines robust enforcement with preventative measures. This requires strengthening the Authority’s capacity to conduct thorough audits, investigate financial records, and pursue legal action against defaulters. Furthermore, the GRA should prioritize educating taxpayers about their obligations and the consequences of non-compliance. This proactive approach will not only help to recover outstanding debts but also foster a culture of tax compliance within the country.
Ultimately, resolving the issue of tax arrears requires a collaborative effort involving not only the GRA but also other government agencies and the indebted institutions themselves. Open communication and collaborative problem-solving are crucial for developing sustainable solutions. The government must work with state-owned enterprises to address the underlying financial challenges that contribute to tax non-compliance. This may involve providing financial management training, implementing stricter budgetary controls, and promoting greater transparency and accountability within these organizations. By addressing the root causes of the problem, the government can create a more robust and sustainable tax system that contributes to the overall economic health of the nation.
