
Government to Scrap COVID-19 Levy
28 Jul, 2025
Built Editorial
28 Jul, 2025
Ghana’s Finance Minister has confirmed that the COVID-19 Health Recovery Levy will be abolished as part of a sweeping Value Added Tax (VAT) reform agenda, fulfilling a major promise made by the National Democratic Congress (NDC). The announcement came during the presentation of the 2025 Mid-Year Budget Statement to Parliament on Thursday, July 24.
“The COVID levy will be abolished,” Dr. Forson declared, adding that “the effective VAT rate will be reduced.” The scrapping of the pandemic-era levy is part of a broader effort to restructure the nation’s VAT system, making it simpler, more equitable, and growth-oriented.
The proposed reforms are anchored in a new VAT Amendment Bill set to be finalised by October 2025 and incorporated into the 2026 Budget. Among the key policy measures outlined are:
Dr. Forson emphasized that these changes are aimed at correcting the distortions inherent in the current VAT regime. “These reforms are aimed at addressing the distortions and cascading effect inherent in the current VAT structure,” he told Parliament.
The reforms are also expected to boost domestic revenue mobilisation, support structural changes in public financial management, and underpin macroeconomic stability. According to the Finance Minister, these measures are part of a comprehensive economic strategy designed to foster inclusive growth and ease the financial burden on Ghanaian households and businesses.
Consultations with the International Monetary Fund (IMF) have already concluded, and the Ministry of Finance, in collaboration with the Ghana Revenue Authority (GRA), is currently engaging stakeholders across the country.
“Currently, the Ghana Revenue Authority together with the Ministry of Finance is undertaking a nationwide consultation process to sensitise key players in the trade and business sector on the VAT reform and solicit feedback from them,” Dr. Forson noted. This consultation phase is expected to conclude by September 2025.
Dr. Forson also reaffirmed the administration’s commitment to prudent fiscal management and an inclusive economic recovery. “We are determined to implement a fairer, more efficient tax system that reduces the burden on citizens while strengthening the foundation for sustained growth,” he said.
The Finance Minister expressed confidence that these changes, once enacted, will help restore investor confidence, ease inflationary pressures, and support Ghana’s long-term economic development goals.
The new VAT Bill is expected to be laid before Parliament as part of the 2026 Budget Statement.
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