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| Gov''t To Rescue ECG, GT And VRA |
1/9/2007 |
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Tuesday, 09 January 2007
The Ministry of Finance is set to issue a credit note for the Value Added Tax (VAT) Service to cater for a substantial amount of monies owed the service by the Electricity Corporation of Ghana (ECG), Ghana Telecom (GT) and the Volta River Authority (VRA).
The three companies owe the service huge sums of money in VAT returns, but were spared from closure late last year, when government stepped in to prevent the VAT service from carrying out the exercise.
Ghananewstoday sources at the Finance Ministry say the Ministry has finalized a deal to write off a substantial amount of the debts of the three companies in a bid to aid the VAT service in the achievement of its target. The credit note, which will be over one hundred million cedis, is expected to aid the service in achieving its target of about 3.4 trillion cedis.
The VAT service has been unable to achieve its last year''s target of 3.4 trillion cedis, a situation which has been attributed to the unavailability of excise duty due to the closure of British American Tobacco and government''s efforts at reducing cigarette smoking in the country.
It will be recalled that government intervened last year, when the revenue agency visited the premises of these companies to close them down. Te VAT service was able to amass an amount of 2.79 trillion cedis, excluding excise duty, in returns last year.
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