In a move set to bring relief to businesses and consumers alike, Ghana’s Finance Minister, Dr. Cassiel Ato Forson, has announced that the COVID-19 Health Recovery Levy will be scrapped. This announcement was made during the presentation of the 2025 Mid-Year Budget Review to Parliament.
According to Dr. Forson, the levy—introduced in 2021 to support Ghana’s pandemic recovery efforts—will be removed as part of a broader tax reform initiative embedded in a new Value Added Tax (VAT) Act, which is scheduled to be laid before Parliament in October 2025.
“As part of our commitment to tax reform and economic recovery, the COVID-19 levy will be abolished under the new VAT Act,” Dr. Forson declared during his address to the House.
The 1% levy was added to existing VAT rates at the height of the COVID-19 pandemic to help fund health infrastructure and public health measures. While the policy initially served its purpose, many economists and business leaders have since called for its removal, arguing that it has outlived its usefulness and adds to the cost of doing business.
The Finance Minister’s announcement has been welcomed by a wide cross-section of the public and private sector, who view it as a step toward easing the tax burden and restoring investor confidence.
As the country continues on its path toward economic stability and growth, the abolishment of the COVID levy marks a symbolic and practical shift away from emergency fiscal measures—and toward a leaner, more growth-oriented tax framework.
