Government 'abolishes' COVID-19 Levy

The Minister of Finance, Dr Cassiel Ato Forson, has announced that the government will abolish the COVID-19 Health Recovery Levy, a tax introduced during the pandemic to support the country’s health and economic response.

Speaking in Parliament during the presentation of the 2026 Budget Statement and Economic Policy on Thursday, November 13, 2025, the minister noted that the decision forms part of the government’s broader plan to ease the tax burden on citizens and businesses while promoting growth and economic recovery.

“After months of detailed analysis and broad consultations with stakeholders, we have completed the design of a modernised VAT system fit for Ghana’s economic transformation agenda. Mr Speaker, the Government is, therefore, submitting to this august House, for approval, a bold package of VAT reforms that will make our tax system more equitable, transparent, and business-friendly.

“Rt Hon Speaker, the new VAT reforms will abolish the COVID-19 Health Recovery Levy; and abolish the decoupling of the GETFund and NHIL levies from the VAT tax base, allowing both levies to be subject to input tax deductions,” he said.

He added, "Mr Speaker, by abolishing the COVID-19 levy, government is putting GH¢3.7 billion in the pockets of individuals and businesses in 2026 alone."

The COVID-19 levy, introduced in 2021, imposed a 1% charge on goods and services to help fund healthcare infrastructure and pandemic-related expenditures.

The tax has since faced public criticism for increasing the cost of living amid existing economic pressures.

He explained that the government’s decision reflects improved fiscal performance and growing confidence in Ghana’s post-pandemic economic outlook.

“Mr Speaker, by abolishing the COVID-19 levy, the Government is putting GH¢3.7 billion into the pockets of individuals and businesses in 2026 alone,” he added.

The COVID-19 levy is expected to be officially scrapped following the passage of the 2026 Budget Statement and related fiscal policy measures by Parliament.

Watch the finance minister delivering the 2026 budget in Parliament:

Read the full budget text below:



SP/BAI

Watch the promo to GhanaWeb's latest documentary, which uncovers the evolution of ‘kayamata,' an exploitative practice fueled by love charms and manipulation, titled, “The Dark Side of Kayamata,' below:

Family of late Samuel Aboagye drags widow to court over refusal to conduct DNA test on child



The wait is over! The GhanaWeb Excellence Awards 2025 is officially launched. Let's celebrate impact, innovation and excellence across Ghana.

Who deserves to be honoured this year?

Nominate now 👉 https://ghanaweb.com/ghanaexcellenceawards/nominate