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The Ghana Revenue Authority (GRA) has requested that SOL Cement’s management in Tema settle at least 40% of their outstanding debts before allowing the company to resume operations.
The GRA recently shut down the cement factory due to GH¢700 million in unpaid taxes, which included Value Added Tax (VAT) discrepancies. After a tax audit by the GRA’s tax enforcement, the company was found to be in violation of VAT regulations, corporate income tax, and faced penalties for failing to pay taxes for over two years. The GRA has given them a 10-day deadline to settle the outstanding amount.
Kwabena Gyambra, the Commissioner of Domestic Taxes, explained that the proposed solutions from the company during discussions with the GRA were deemed unsatisfactory, leading to the continued closure of the company. He stated, “We will reopen operations once they make a 40% settlement of their liabilities and provide a realistic plan for the remaining amount.”
In an effort to gain insight into the shutdown, Finance Minister Ken Ofori-Atta visited the factory. He acknowledged that the GRA’s action signifies the start of efforts to bolster the country’s revenue but emphasized that further discussions with the company would be conducted to resolve the issue. Ofori-Atta also highlighted the challenges companies face in meeting their tax obligations, especially considering the significant volume of raw materials imported for cement production.
Currently, hundreds of workers are eagerly awaiting a resolution to return to work.
Meanwhile, Wan Heng Ghana Limited, the producers of Sol Cement, issued a statement on October 23, 2023, in which they apologized and assured their stakeholders of their commitment to resolving the tax issue.
