The Minister of Finance, Dr Cassiel Ato Forson, has announced the government’s decision to abolish the COVID-19 Health Recovery Levy as part of sweeping reforms to ease the tax burden on Ghanaians and stimulate economic growth.
Presenting the 2026 Budget Statement and Economic Policy in Parliament on Thursday, November 13, 2025, Dr Forson said the removal of the levy is one of several measures aimed at modernising the country’s tax system and supporting post-pandemic 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,” he told Parliament. “The Government is therefore submitting a bold package of VAT reforms that will make our tax system more equitable, transparent, and business-friendly.”
Among the key reforms is the abolition of both the COVID-19 Health Recovery Levy and the decoupling of the GETFund and NHIL levies from the VAT base—changes that will allow businesses to claim input tax deductions on these levies.
Dr Forson stressed the financial relief these measures will bring to households and the private sector. “By abolishing the COVID-19 levy, government is putting GH¢3.7 billion into the pockets of individuals and businesses in 2026 alone,” he said.
The COVID-19 levy, introduced in 2021, imposed a 1 percent charge on goods and services to support healthcare interventions and pandemic-related spending. Over time, however, it drew criticism from the public for contributing to rising living costs during a period of economic hardship.
The Finance Minister explained that the decision to scrap the levy is informed by improved fiscal performance and renewed confidence in Ghana’s economic outlook.
The removal of the levy will take effect once Parliament approves the 2026 Budget and its accompanying fiscal measures.
