The Ghana Revenue Authority (GRA) has issued Electrochem Ghana Limited, a subsidiary of the McDan Group, a seven-day deadline to pay an outstanding tax liability of GH¢6.8 million or face tougher enforcement measures.

The ultimatum comes after what the Authority says were repeated but unsuccessful attempts to recover the tax debt through engagements with the salt mining company.

As part of its enforcement action, officers from the GRA's Compliance Unit on Wednesday locked up the company's administration block at its Ada operations while allowing production activities to continue.

Speaking to journalists after the exercise, Accra Area Enforcement Manager Joseph Annan said the Authority would escalate its action if the company fails to settle the outstanding amount within the stipulated period.

He disclosed that the tax obligation dates back to 2021 and said several demand notices and reminders issued to the company had failed to produce the desired results.

According to Mr Annan, the company's total liability, including accumulated interest, had reached about GH¢8.8 million. However, following discussions with management during the operation, the GRA accepted a cheque for GH¢200,000 as an initial payment.

He explained that the Authority deliberately avoided shutting down the entire facility to enable the company to continue operations and generate revenue to clear the remaining debt.

Mr Annan warned that if the outstanding balance is not paid within seven days, the GRA will intensify its enforcement measures, including restricting access to the entire mining site.

Officials of Electrochem appealed to the tax authority for more time, assuring the enforcement team that efforts were underway to mobilise the funds needed to settle the debt.

The operation forms part of the GRA's ongoing nationwide enforcement campaign aimed at improving tax compliance and boosting domestic revenue mobilisation to meet this year's collection target.