Former Deputy Finance Minister, Dr. Alex Ampaabeng, has slammed the government’s proposal to use funds from the Tax Refund Account to address revenue shortfalls, describing the move as “illogical” and fiscally unsound.
His criticism follows Finance Minister Dr. Cassiel Ato Forson’s announcement during the 2025 budget presentation that Ghana’s Tax Refund Account had accumulated GH¢29.1 billion over the past eight years. According to Dr. Forson, GH¢12 billion had been disbursed for tax refunds, leaving a balance of GH¢16 billion, which he alleged had either been misapplied or remained unaccounted for. The Finance Minister hinted at utilizing these funds as a revenue source to support government expenditures.
However, speaking on the OXFAM Tax Dialogue on Channel One TV, Dr. Ampaabeng dismissed the idea, arguing that tax refund reserves are not intended to generate revenue but to reimburse businesses that overpay their taxes.
“The tax refund account is not an independent revenue stream. It exists because businesses prepay their taxes in quarterly installments, and in many cases, they overpay. The law mandates that 6 percent of collected taxes be set aside to ensure timely refunds for such businesses,” he explained.
He further warned that relying on the tax refund account to close revenue gaps could lead to liquidity challenges for businesses expecting legitimate reimbursements, ultimately discouraging compliance and weakening investor confidence.
Dr. Ampaabeng’s remarks add to growing concerns over Ghana’s fiscal management and the government’s approach to addressing revenue deficits. He urged policymakers to adopt sustainable and long-term revenue strategies instead of short-term interventions that could destabilize the economy.
