The Association of Ghana Industries (AGI) is calling for further scrutiny of the government’s decision to reduce tax refunds from 6% to 4% as announced in the 2025 Budget Statement.
Chief Executive Officer (CEO) of AGI, Seth Twum Akwaboah, says although the government’s decision to eliminate some taxes to ease the financial burden on businesses is welcoming, the reduction in tax refunds raises critical questions. This he says need to be addressed to ensure it does not negatively impact businesses, particularly exporters.
Reacting to the 2025 Budget in an interview monitored by The High Street Journal, Twum Akwaboah emphasized the need for transparency regarding the basis for the reduction, questioning whether the 4% allocation is sufficient to cater for all legitimate claims by businesses.

“There is one thing that is not very clear to me in terms of trying to mobilise revenue because government is taking out some levies, some taxes, and saying one of the ways of recouping some revenue is to reduce the refund from 6% to 4%. That needs to be interrogated a little bit because we need to be clear on it,” he indicated.
The CEO further expressed concern about whether the government has fully honored past refund claims, especially since reports indicate that over GHS 12 billion in refunds remain unpaid.

“What has been the amount of claim that has been made by the private sector? We need to be clear. Is the 4% sufficient to pay for all the claims? If it is, then the reduction from 6% to 4% is justified. But if it isn’t, and over 12 billion in refunds were not paid, was it due to bureaucratic and administrative challenges, or did the government decide not to pay? Or was there no need for it because businesses didn’t get their claims? If the latter is the case, then the reduction is justified,” he explained.
However, he cautioned that if businesses had indeed applied for refunds but were not paid, then reducing the percentage could severely affect exporters who rely on tax refunds to reinvest in their operations.
Seth Twum Akwaboah stressed that the government must engage industry players to ensure that its decision aligns with business expectations and does not stifle growth in key sectors of the economy.

“This aspect has to be interpreted a bit more to be sure that, indeed, what the government is saying is consistent with what businesses are also expecting,” he added.
The AGI is urging the government to provide comprehensive data on past refund claims and payments, as well as outline clear modalities for implementing the new 4% threshold without disadvantaging businesses.
