Gideon Ayi-Owoo, a tax expert at Deloitte Ghana, has weighed in on the government’s newly announced tax refund reforms, highlighting the concerns of many Ghanaians regarding delayed tax reimbursements.
Speaking on ABC News GH following the presentation of the 2025 Budget by Finance Minister Dr. Cassiel Ato Forson, he stated, “A lot more Ghanaians are still asking for their tax refund. Hopefully, the 4% should be enough to cater for Ghanaians who go to ask for a tax refund.”
The government’s new policy places a four percent cap on total domestic revenue allocated for tax refunds.
The Finance Minister, while presenting the budget to Parliament on March 11, 2025, explained that the existing system had been exploited, resulting in excessive payouts.
“The government has reviewed the tax refund mechanism and found that it is being abused, leading to excessive payouts. To address this, we are introducing a four percent cap on tax refunds, ensuring that funds are better managed and reinvested in priority sectors,” Dr. Forson stated.
The policy aims to curb fraudulent claims and streamline tax administration while redirecting GH¢3.8 billion in savings toward critical infrastructure, healthcare, and education.
The Ghana Revenue Authority (GRA) has been tasked with implementing stricter audits before approving refunds, alongside the expansion of a digital tax administration system to improve tracking and efficiency.
Dr. Forson emphasized that while businesses depend on tax refunds for cash flow and reinvestment, the government must also ensure prudent management of public funds.
The reforms, he assured, align with global best practices and will foster a more transparent and sustainable tax system.
