The Ghana Revenue Authority (GRA) has expressed its commitment to assisting companies facing difficulties to revive their operations, meet their tax obligations, and contribute to job creation.
Dr. Ammishaddai Owusu-Amoah, the Commissioner-General of the GRA, emphasized that the authority is interested not only in tax compliance but also in the growth and survival of distressed companies.
“We are more interested in seeing companies grow to meet their tax obligations. So that mentality or sad notion that the GRA is only interested in getting the money and not so interested in whether the company will survive or not is not true,” stated Dr Owusu-Amoah during a media briefing after touring the revitalized United Steel Company Limited.
Dr Owusu-Amoah reassured stakeholders that the GRA is willing to engage with companies facing challenges and explore ways to revive their operations. He emphasized that the GRA is committed to collecting taxes while ensuring job creation and economic growth.
He stated, “So we are committed to making sure that we get the taxes at the same time to make sure that Ghanaians also get the jobs and get production, and our GDP going up.”
United Steel Company Limited was purchased by leading steel manufacturer B5 Plus Limited after it failed to meet its tax obligations and was put under administration and eventual sale.
At the time of the sale, the company had an outstanding tax liability of over GH¢400 million.
Dr Owusu-Amoah revealed that B5 Plus Limited, after acquiring the company, paid the tax liability of GH¢149 million in full, taking advantage of the waiver of penalties and interest.
The company also settled the debts owed to banks and creditors and re-engaged many of the over 400 workers.
The Commissioner-General commended B5 Plus Limited for its investment in revamping the factory and transforming it into a productive facility.
The Chief Executive Officer of B5 Plus Limited, Mukesh Thakwani, acknowledged the challenges faced during the revitalization process but expressed optimism about generating quality products.
He highlighted the company's investment of over $35 million in the factory's revamp and announced plans to invest an additional $10 million in the next two years.
B5 Plus Limited aims to leverage the African Continental Free Trade Area (AfCFTA) to expand its market reach beyond Ghana and the West African sub-region.
Thakwani pledged to contribute between GH¢100 million and GHS150 million in taxes once the plant is fully operational, calling for support, especially a ban on products that can competitively be produced at the company.
