The state institutions include the Ghana Airports Company Limited (GACL) the Electricity Company of Ghana (ECG), Tema Oil Refinery (TOR), and the Graphic Corporation.
The GH¢1 billion owed by state institutions is a staggering figure that underscores the gravity of the problem.
This was made known at the public accounts committee sitting on Monday, July 29, 2024, by officials of GRA.
An official of the GRA stated that GACL and Graphic Corporation currently are having cash flow challenges.
He mentioned that both institutions have informed the GRA that they require a moratorium to return to us. They are ready to make payments as soon as their cash flow improves.
This debt spans multiple sectors and institutions, reflecting a systemic issue rather than isolated incidents.
The non-payment of taxes by these entities undermines the GRA’s ability to collect revenue and impacts the government’s capacity to fund essential services and infrastructure projects.
The Minister of State at the Finance Ministry, Abena Osei Asare speaking on companies that are unlikely to pay their taxes.
The GRA has been working closely with these institutions to develop a feasible repayment plan, aiming to ensure that tax revenues are eventually collected without imposing undue financial stress on the institutions involved.
The request for a moratorium reflects the broader economic challenges faced by state entities, which have been grappling with budgetary constraints and operational inefficiencies.
This situation underscores the importance of stringent financial oversight and robust revenue collection mechanisms.
Source:
www.pulse.com.gh
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