PARLIAMENT REPEALS COVID-19 LEVY

Parliament of Ghana has passed the Value Added Tax Amendment Bill, 2025, which officially repeals the COVID-19 Health Recovery Levy. 

The levy, initially a 1% tax on goods and services, was introduced in 2021 to fund pandemic-related expenses but faced criticism for burdening households and businesses even after the pandemic subsided. 

The abolishment, announced by Finance Minister Dr. Cassiel Ato Baah Forson during the 2026 budget, is expected to provide significant financial relief to the country. 

Mr. Ato Forson further revealed that this repeal is part of a broader VAT reform agenda aimed at creating a fairer, simpler, and more growth-focused tax system.
Also it is projected to return GH¢3.7 billion to individuals and businesses in 2026 alone.

Additionally, the VAT reform also includes other changes, such as making the GETFund and National Health Insurance levies eligible for input tax deductions.