Thirteen agricultural companies sue Ghana Revenue Authority and Cocobod over payment of VAT

November 26, 2019 3:09 PM

Kuapa Cocoa and twelve (12) other agricultural companies have sued the Ghana Revenue Authority (GRA), the Ghana COCOBOD and their various heads of institutions over what they described as an imposition of Valued Added Tax (VAT) on them.

Chief Executive Officer of COCOBOD, Joseph Boahen Aidoo

In their writ to the court, the companies which include Olam Ghana and CDH Commodities, said they do not pay VAT for the past 24 years.

However, the GRA in a letter has directed the Ghana COCOBOD to register them for the collection of VAT. The companies described this move as unreasonable, capricious and a complete disregard for the law and their economic rights.

The companies are therefore praying the court to make a declaration that will exempt them from paying VAT on agricultural activities including the trucking and haulage of agricultural products, which include cocoa, coffee and shea nuts in their raw state.

They also want the court to place a perpetual injunction preventing the GRA and COCOBOD from ever auditing, purporting to audit, assessing or purporting to assess the Plaintiffs to charge the Plaintiffs to pay Value Added Tax (VAT).

The companies are further asking the court to order the GRA and COCOBOD to fully compensate for the VAT paid by them.