By Francis Kobena Tandoh
Finance Minister Dr. Cassiel Ato Forson confirmed on Thursday that the COVID‑19 Health Recovery Levy will be completely abolished.
Presenting the 2025 Mid‑Year Budget Review on the floor of Parliament, he observed that the repeal is part of a wider overhaul of Ghana’s value-added tax (VAT) system aimed at simplifying tax structures and easing burdens on consumers and businesses.
According to him, the COVID‑19 levy will be abolished in its entirety with the National Health Insurance Scheme (NHIS) and Ghana Education Trust Fund (GETFund) levies removed, eliminating cascading charges.
“The COVID levy will be abolished,” Dr. Forson stated clearly. “The effective VAT rate will be reduced,” he added, signalling a wider review of Ghana’s current VAT system.
He disclosed that a single unified VAT rate will be introduced by the government, replacing the flat‑rate scheme.
The finance minister explained that the government is committed to simplifying and restructuring VAT to make it fairer and more efficient. “These reforms are aimed at addressing the distortions and cascading effect inherent in the current VAT structure,” he said.
He announced completion of consultations with stakeholders is expected by September 2025, with the VAT Amendment Bill tabled in October 2025 ahead of the 2026 budget to be presented by November this year.
“Currently, the Ghana Revenue Authority, together with the Ministry of Finance, is undertaking a nationwide consultation process to sensitize key players in the trade and business sector on the VAT reform and solicit feedback from them,” he told Parliament.
With the abolition of the COVID-19 levy, consumers can look forward to lower prices as overlapping levies are removed, while small businesses will benefit from a raised VAT registration threshold and simplified compliance.
It also means the government aims to maintain revenue using a cleaner, fairer VAT system enhanced by digital collection tools and public education campaigns. Enditem
Source: Ghana Eye Report
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