The Ghanaian government has officially scrapped the COVID‑19 Health Recovery Levy, a move announced by Finance Minister Dr. Cassiel Ato Forson as part of the 2026 Budget. The removal of the levy is expected to return approximately GH₵3.7 billion to individuals and businesses next year.
Dr. Forson explained that the decision forms part of broader VAT reforms designed to ease the tax burden and stimulate economic growth. Key reforms include:
-
Reducing the effective VAT rate from 21.9% to 20%.
-
Raising the VAT registration threshold from GH₵200,000 to GH₵750,000.
-
Restoring input-tax deductions for levies such as the GETFund and NHIL.
-
Removing VAT on mineral reconnaissance and prospecting activities.
-
Extending the VAT zero-rating for local textile manufacturing to 2028.
The Finance Minister emphasized that abolishing the levy demonstrates the government’s commitment to fairness, transparency, and inclusive economic recovery, providing relief for businesses and households still affected by the economic fallout of the pandemic.
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
Source: Thepressradio.com
