The COVID-19 Health Recovery Levy, popularly known as the ‘COVID Levy’, will be abolished as part of series of tax reforms under the Value Added Tax (VAT) Act, Finance Minister Dr. Cassiel Ato Forson has announced.
Speaking before Parliament, Dr. Forson said the decision reflects the National Democratic Congress (NDC) government’s commitment to fulfilling a key promise made to the Ghanaian people, amid easing the burden on Ghanaians.
He explained that the levy would be scrapped through a proposed amendment to the Value Added Tax (VAT) legislation.
“The COVID levy will be abolished. I would like to reassure Ghanaians that the COVID-19 Levy will be abolished, the Effective VAT Flat Rate will be reduced, the punitive and cascading effects of the NHIS Levy will be removed, and GETFUND will be removed.
“VAT Flat Rate will be removed, and a unified VAT Rate will be implemented,” he stated on Thursday, July 24, 2025, during the presentation of the Mid-Year Review Budget.
As part of a broader overhaul of the VAT regime, Dr. Forson noted that the government aims to simplify and restructure the system to enhance efficiency.
“These reforms are aimed at addressing the distortions and cascading effect inherent in the current VAT structure,”
he said.
Dr. Forson further revealed that the Ghana Revenue Authority, in partnership with the Ministry of Finance, is conducting nationwide consultations to engage stakeholders in the trade and business sectors on the proposed VAT reforms.
“Currently, the Ghana Revenue Authority together with the Ministry of Finance is undertaking a nationwide consultation process to sensitise key players in the trade and business sector on the VAT reform and solicit feedback from them,”
he added.
