Finance Minister Dr. Cassiel Ato Forson has made startling revelations about the alleged abuse of GH₵16.6 billion from the Tax Refund Account of the Ghana Revenue Authority (GRA).
However, critical details remain undisclosed, raising concerns about potential reputational damage to individuals and institutions.
The Finance Minister did not name those responsible for the alleged misapplication of funds or specify how the money was used.
Missing funds and legal violations
While presenting the 2025 Budget Statement and Economic Policy, Dr. Forson revealed that over the past eight years, GH₵29.11 billion had accumulated in the Tax Refund Account of GRA.
Out of this amount, he said only GH₵12.5 billion—just 43%—was used for tax refunds, which is the intended purpose of the fund.
Per the law, six of total government revenue is allocated to tax refunds.
However, the Finance Minister said GH₵16.6 billion, representing 57% of the accumulated amount, was allegedly misapplied in violation of the Revenue Administration Act, 2016 (Act 915) and the Public Financial Management Act, 2016 (Act 921).
“Instructively, there were virtually no tax refund arrears over the period,” Dr. Forson stated, further raising questions about the nature of the financial mismanagement.
Demand for clarity and accountability
The magnitude of this financial controversy has sparked calls for full disclosure on how these funds were abused, who authorized their use, and what specific activities they financed.
The Ghanaian public and financial watchdogs are urging authorities to provide concrete evidence and a detailed audit report.
Adjusting tax refund ceilings
In response to these findings, the government has announced a reduction in the tax refund ceiling from 6% to 4% of total revenue mobilized by the government, as defined in Section 69 of the Revenue Administration Act, 2016 (Act 915).
Dr. Forson emphasized that lowering the ceiling would save GH₵3.8 billion annually, which would help cover revenue shortfalls from the removal of the Electronic Transactions Levy (E-Levy) and GH₵180 million for the “Betting Tax.”
“Already, we have saved GH₵3.8 billion for 2025 alone from only one source, and this is enough to close the gap from the taxes that we have removed,” he stated.
He further indicated that amendments to the Revenue Administration Act, 2016 (Act 915) would improve tax revenue collection by 2%, representing 0.3% of GDP.
The way forward
As the government works towards fiscal stability, the demand for accountability over the GH₵16.6 billion misapplied funds remains strong.
Many Ghanaians expect independent investigations to ensure that those responsible are held accountable and to prevent such financial mismanagement in the future.
