Commissioner-General Anthony Sarpong has told Parliament that the Ghana Revenue Authority (GRA) has recovered GH¢1.3 billion out of about GH¢1.4 billion in outstanding Value Added Tax (VAT) owed by the Electricity Company of Ghana (ECG).
Appearing before Parliament’s Public Accounts Committee, the Commissioner-General explained that the ECG had struggled to remit all the VAT it collects on behalf of the state.
He said the outstanding amount had accumulated over time because the power distributor maintained that its collection systems did not allow it to recover all the VAT charged to customers.
However, Mr Sarpong said the GRA had engaged the ECG to address the issue and had made significant progress in recovering the outstanding revenue.
“ So as of today, of the GH¢1.4 billion, we have recovered GH¢1.3 billion of that, which is about 86.56 per cent of what is there,” he told the committee.
“We’ve made some good progress, and we are still engaging them to improve the situation,” he added.
During the committee sitting, Mr Sarpong explained that the ECG was among the institutions being pursued by the GRA to recover outstanding revenue.
He said the company was responsible for charging and collecting VAT from customers before remitting the money to the authority.
However, according to him, the ECG had consistently argued that it could not collect the full amount of VAT levied across all categories of customers.
“In their processes, they have always raised the matter that they are not able to collect all the VAT they levy, and therefore they pay according to the ability to collect,” he said.
He explained that the difference between the amount charged and the amount collected had caused the outstanding liability to grow over time.
“Every month, what they levy, we have a short collection of it, and it tends to build up in the process,” he said.
Mr Sarpong added that the GRA had held discussions with the ECG to resolve the matter and improve the collection and remittance of the tax.
The disclosure prompted questions from the committee about why the ECG could not collect all the VAT charged to customers, given that the tax components were clearly displayed on electricity bills and receipts.
The Chair of the committee, Abena Osei Asare, questioned the company’s explanation, pointing out that customers could see the VAT component when they purchased electricity.
“The moment you buy the power, look at the receipts. They show you the VAT components, and then they show you. So why are they saying they are not able to collect in all instances? I don’t understand,” the chair asked.
In response, Mr Sarpong clarified that he was not speaking on behalf of the ECG but explaining the position the company had presented to the GRA.
“Madam Chair, let me put it this way, since I’m not purporting to speak for ECG,” he said.
He explained that the company’s argument was that its existing collection mechanisms did not allow it to recover all the VAT charged across the different categories of customers liable to pay the tax.
“So, based on what they collect, they remit. Unfortunately, what they collect is always lower than what they’ve built, and that continues to build up,” he said.
Mr Sarpong said the authority had stepped up its engagement with the ECG over the past year and into 2026, resulting in the recovery of most of the outstanding amount identified.
The GH¢1.3 billion recovered represents about 86.56 per cent of the GH¢1.4 billion owed, according to the Commissioner-General.
He said the GRA would continue working with the ECG to address the shortfall and improve the amount of VAT collected and remitted to the state.
The disclosure highlights the challenges the revenue authority faces in ensuring that taxes collected by institutions on behalf of the government are fully accounted for and paid over.
The GRA has not indicated when the remaining outstanding amount will be fully recovered.