The Ghana Revenue Authority sealed four Chinese owned manufacturing companies in the Mallam industrial area of Accra for failing to produce mandatory sales records during a nationwide tax enforcement operation on December 19, 2025. WZL Doors Manufacturing Company, Alicanonizing Company Limited, Hai Ning Chen Yu Limited and Yida Feng Company Limited were closed after officers found them selectively issuing Value Added Tax invoices and refusing to present required documentation.
Assistant Commissioner in charge of Accra Area Enforcement Joseph Adjeikwei Annan said the enforcement team inspected five companies within a large industrial enclave comprising mostly foreign owned manufacturing and trading firms. Mingzhou Ghana Limited initially failed to produce its records but avoided closure after submitting the required documentation while sealing procedures were underway. The affected businesses will remain closed until they fully comply by submitting their sales records to the Authority for verification.
Annan emphasized that keeping proper sales records represents a legal requirement under Ghana’s tax laws and that failure to do so constitutes a serious offence. He noted that the Ghana Revenue Authority had undertaken several weeks of public education through radio, print and other media platforms prior to the exercise, making clear that enforcement actions would follow persistent non compliance. The operation forms part of the Authority’s intensified compliance drive aimed at ensuring businesses meet their statutory tax obligations.
The Assistant Commissioner cautioned that the enforcement drive would continue across Accra and other parts of the country until voluntary compliance improved, urging businesses to regularize their tax affairs promptly. He further warned that tampering with Ghana Revenue Authority seals attracted severe penalties and that persistent offenders could face arrest and prosecution. Annan appealed to the public not to shield tax offenders, stressing that tax compliance was a shared civic responsibility critical to mobilizing revenue for national development.
The Mallam operation follows similar enforcement actions targeting various business sectors across the capital during December 2025. On December 13, the Authority intensified enforcement against businesses operating within the night economy after discovering that a significant number of nighttime establishments were either unregistered or failing to meet tax obligations. Alpha Senanu Hossoo, Coordinator of the Night Market Economy Project, said the Authority’s intervention became necessary after two years of monitoring compliance levels among night businesses.
The enforcement team visited about seven businesses including nightclubs, pubs, bars, lounges and restaurants, finding that five were not registered with the Ghana Revenue Authority while others though registered and filing returns had failed to pay taxes due, leading to accumulated arrears. At Cloud Nine, a popular entertainment spot in Osu, the Authority sealed off the premises for the fourth time after repeated failures by management to honor invitations to engage with the Authority. Hossoo warned that under the Revenue Administration Act, penalties of up to 300 percent could be imposed on unpaid taxes once assessments were completed.
Earlier enforcement operations on December 11 covered various manufacturing and trading companies across Accra. The team visited Metalex Company, InterAfrica Company and Aiven Company Limited where a rigorous review of documents, invoices and payment records was conducted. At Metalex Company, officers scrutinized invoices and tax documentation to confirm that all payments due to the state had been made without breach. During the visit to Aiven Company Limited, the team discovered that the company had failed to remit taxes between November 28 and December 11, with management directed to report to the Ghana Revenue Authority office for further investigations.
On December 18, the Authority seized large volumes of excisable goods found on the market without mandatory excise tax stamps following a compliance enforcement exercise in parts of Accra and Tema. The exercise covered areas including Rawlings Park, the Makola Shopping Mall and a shop in Tema. Kwabena Apau Awua Anto, Chief Revenue Officer in charge of Excise at the Ghana Revenue Authority, said there was widespread non compliance with the excise stamp regime, an indication that taxes and duties on the affected products had not been paid.
The seized items included fruit juices, soft drinks, spirits and wines, malt drinks and bottled water, all of which are required by law to carry excise stamps whether locally manufactured or imported. Anto described the situation as very alarming, noting that despite repeated education campaigns in the markets, non compliance remained high. He explained that the ongoing exercise combined sensitization with enforcement, with the ultimate aim of achieving voluntary compliance among traders and importers.
Assistant Commissioner Annan revealed that the Authority observed a worrying trend where many taxpayers filed returns to avoid penalties but failed to make actual payments. He said others had stopped filing altogether despite continuing operations, while some declared far less than they were required to pay. The official explained that in early 2024, the Authority returned to the field to assess the situation and found that the volume of infractions required more manpower. The Authority is targeting more than 30 billion cedis in revenue this month to help recover previous shortfalls.
Responding to questions on last year’s enforcement activities involving arrest of several non compliant foreign businesses, Annan said the Ghana Revenue Authority did not pursue prosecutions at the time because the exercise was the Authority’s first major arrest operation. He said management granted amnesty but insisted all outstanding taxes be paid. He noted however that this year’s operations will be stricter, especially after months of public sensitization. Taxpayers who continue to flout the law despite repeated notices will be treated as delinquent.
On revenue losses, Annan said it was difficult to quantify the exact amount due to the scale of non compliance but indicated that the losses were substantial. He said some taxpayers owe millions of cedis based on their own declarations, not audit findings. The Assistant Commissioner assured the public that enforcement would continue to be part of the Ghana Revenue Authority’s daily operations nationwide as the Authority strategizes to boost revenue mobilization and improve compliance.
The Ghana Revenue Authority has embarked on a public education campaign to deepen understanding of excise duty obligations and promote voluntary tax compliance among manufacturers, importers and consumers. Anto said the exercise formed part of the Sustained National Tax Education Programme and the Modified Taxation framework launched on November 5, 2025. He said the Authority considered public engagement critical to achieving compliance, noting that many taxpayers were willing to comply when adequately informed about their obligations.
Excise duty is imposed on a wide range of products consumed daily by the public, although awareness of the tax remains low. Bottled water attracts an excise duty of 17.5 percent, while beer is taxed at 47.5 percent. Spirits including local gin and imported alcoholic beverages attract an excise duty of 50 percent. The Authority introduced a public verification tool, the Ghana Revenue Authority Tax Stamps Authenticator App available for download on the Play Store, to enable consumers to verify the authenticity of excise stamps.
Scanning a stamp provides details such as product type, volume and manufacturer, with any inconsistency potentially indicating non compliance or counterfeiting. The Ghana Revenue Authority works closely with the Food and Drugs Authority to ensure that only FDA certified products are issued with excise stamps, stressing the importance of consumer vigilance in safeguarding public health. The Authority’s approach emphasizes education over enforcement, with the aim of achieving voluntary compliance through sustained education and the right information.
The establishment of the Ghana Revenue Authority represented a culmination of years of plans to streamline the administration of tax collection in Ghana which began in 1986 when Customs Excise and Preventive Service and Internal Revenue Service were taken out of the Civil Service and made semi autonomous public sector institutions. In December 2009, the four revenue agencies including Customs Excise and Preventive Service, Internal Revenue Service, Value Added Tax Service and Revenue Agencies Governing Board Secretariat were merged in accordance with the Ghana Revenue Authority Act 2009.
The Authority is charged with assessing, collecting and accounting for tax revenue in Ghana while assisting taxpayers to understand and meet their tax obligations by providing robust and comprehensive advice. A nine member governing board of directors consisting of both public and private sector experts makes policy decisions to be implemented by Ghana Revenue Authority management. The Board also makes recommendations to the Minister of Finance on tax policy, reform and legislation. The chairman of the Board as well as the chief executive officer called the Commissioner General are appointed by the President of Ghana.
The Ghana Revenue Authority remains a key partner of the Tax Policy Unit of the Ministry of Finance and Economic Planning. This collaboration complemented by tapping expertise of stakeholders drawn across several economic and social sectors is geared toward formulating effective and sustainable policies designed to enhance tax revenue collection. Taxpayers registered with the Ghana Revenue Authority are segmented into three identifiable groups based on defined criteria including large, medium and small.
Taxpayers with an annual turnover of over five million cedis are classified as large taxpayers. This category also includes specialist industries irrespective of their turnover including upstream and midstream petroleum companies, banking institutions, insurance companies, mining companies and quarries, and members of groups of companies where at least one member qualifies as a large taxpayer. The Authority announced in April 2022 that it will begin collecting value added taxes from non resident companies or persons that conduct business transactions in Ghana via electronic transmission of data over communications networks like the internet.
The Ghana Revenue Authority is reminding the public about their informant award scheme where individuals can receive rewards for providing information that aids in tax recovery. The information should reveal various illicit activities including tax underreporting, smuggling or diversion of goods, invoice manipulation, failure to provide VAT invoices, record tampering or fabrication, failure to register for taxes and similar violations. In December 2022, through effective implementation of its Informant Reward Scheme, the Ghana Revenue Authority managed to recover more than 93 million dollars from multinational and domestic companies.
The December enforcement operations reflect a broader shift in the Authority’s approach from education focused strategies toward more aggressive compliance actions. Officials emphasize that months of public sensitization through various media platforms preceded the current wave of closures and seizures. The strategy aims to demonstrate that taxpayers who ignore educational outreach and voluntary compliance opportunities will face escalating consequences including business closures, asset seizures and potential criminal prosecution.
Foreign owned businesses particularly those from Asia have become focal points of recent enforcement activities. The concentration of Chinese owned companies in the Mallam industrial area reflects broader patterns of foreign direct investment in Ghana’s manufacturing sector. These companies often operate in industries including furniture manufacturing, metal fabrication, textiles and general trading. Tax authorities have expressed concern that some foreign owned enterprises maintain dual record keeping systems, with one set of books presented to authorities and another reflecting actual business transactions.
The selective issuance of Value Added Tax invoices represents a common compliance violation. Businesses may issue proper VAT invoices to certain customers while failing to document other sales, effectively underreporting revenue and evading tax obligations. This practice deprives the government of substantial revenue while creating unfair competitive advantages over compliant businesses. The Ghana Revenue Authority has invested in data analytics and intelligence gathering to identify businesses engaged in these practices.
Looking ahead, the Authority signals that enforcement intensity will not diminish in 2026. Officials indicate plans to expand operations beyond Accra to regional capitals and secondary cities where compliance levels are believed to be even lower than in the capital. The deployment of additional enforcement officers and investment in mobile technology enabling field audits and real time record verification supports this expanded mandate. Businesses operating without proper documentation or engaging in selective compliance face increasing likelihood of detection and sanction.
The broader economic context includes government efforts to boost domestic revenue mobilization amid fiscal pressures. Ghana completed its debt restructuring program in 2024 under International Monetary Fund guidance, with commitments to improve tax collection efficiency and broaden the tax base. Revenue targets for 2025 and beyond require significant improvements in compliance rates across both formal and informal sectors. The Ghana Revenue Authority’s aggressive enforcement posture reflects these imperatives while testing business community tolerance for more assertive regulatory oversight.