Government abolishes COVID-19 levy

The government has announced the abolition of the COVID-19 Health Recovery Levy as part of sweeping reforms to Ghana’s Value Added Tax (VAT) regime in its bid to inject fresh momentum into the economy.

It is also expected to provide major relief for households and businesses.

Finance Minister Dr. Cassiel Ato Forson, in presenting the 2026 Budget Statement and Economic Policy to Parliament, described the decision as one of the most impactful tax reforms in recent years.

“Mr. Speaker, by abolishing the COVID-19 levy, the Government is putting GH₵3.7 billion in the pockets of individuals and businesses in 2026 alone,” Dr. Forson stated.

The scrapping of the pandemic-era levy forms the centrepiece of a GH₵5.7 billion relief package aimed at reducing the cost of living, supporting enterprise growth, and stimulating private sector activity.

According to Dr. Forson, the broader VAT reforms are designed to simplify the tax structure and ease the financial burden on both consumers and firms. “Mr. Speaker, all together, the VAT reforms are expected to give back GH₵5.7 billion to businesses and households,” he told Parliament.

Among the key measures announced as part of the overhaul of the country’s tax regime include the abolition of the COVID-19 Health Recovery Levy, Input Tax Deductions on Levies, and Reduced Effective VAT.

The government will also prepare targeted industry reliefs to boost business productivity, the minister said.

Dr. Forson said the reforms reflect the government’s commitment to easing the tax burden and promoting recovery after years of fiscal tightening.

The VAT overhaul, anchored by the elimination of the COVID-19 levy, marks a decisive policy shift toward stimulating growth and restoring consumer confidence in the post-pandemic economy.