Government officially scraps COVID-19 levy

The Minister of Finance, Dr Cassiel Ato Forson, has officially announced the scrapping of the COVID-19 levy, a move he says will provide financial relief to Ghanaians and businesses.

In a post shared on his X page on November 21, 2025, Dr Ato Forson reiterated the government’s commitment to easing the tax burden on citizens.

“For emphasis, we promised to abolish the COVID-19 levy. With the support of this House, I am happy to announce that it is abolished!” he stated.

The measure was included in the government’s 2026 Budget Statement and Economic Policy, presented in Parliament on November 13, 2025. In that address, the Minister also announced a series of VAT reforms designed to reduce the cost of living and operational expenses for businesses.

According to him, scrapping the levy will provide GH¢3.7 billion in relief to individuals and businesses in 2026.

Government 'abolishes' COVID-19 Levy

He further highlighted additional tax reforms aimed at lowering business costs.

“By abolishing the COVID-19 levy, the government is putting GH¢3.7 billion into the pockets of individuals and businesses in 2026 alone. These reforms will also reduce the cost of doing business by 5% as a result of subjecting the GETFund and NHIL levies to input–output deductibility,” he earlier said.

The new VAT measures are projected to return nearly GH¢6 billion to businesses and households, making them one of the most significant tax relief initiatives in recent years.

The COVID-19 levy, introduced in 2021, imposed a 1% charge on goods and services to help fund healthcare infrastructure and pandemic-related expenditures. It has faced widespread public criticism for increasing the cost of living amid existing economic pressures.

For emphasis, we promised to abolish the COVID-19 levy.

With the support of this House, I am happy to announce that it is abolished!

By abolishing the COVID-19 levy, Government is putting GH¢3.7 billion in the pockets of individuals and businesses in 2026 alone.

These reforms… pic.twitter.com/K1a7Er9J6K

— Cassiel Ato Forson (PhD) (@Cassielforson) November 21, 2025