Finance Minister Dr. Cassiel Ato Forson has reaffirmed the government’s decision to abolish the COVID-19 Health Recovery Levy, fulfilling a key promise by the National Democratic Congress (NDC).
Presenting the 2025 Mid-Year Budget Review in Parliament on Thursday, July 24, Dr. Forson announced that the levy, introduced during the pandemic to support health sector financing, will be scrapped through a new amendment to Ghana’s Value Added Tax (VAT) law.
“The COVID levy will be abolished. The effective VAT rate will be reduced,” he stated.
Dr. Forson said the reforms aim to simplify the tax regime and address inefficiencies in the current VAT structure.
“These measures are intended to address the cascading effects and inefficiencies of the existing VAT system,” he added.
The Finance Ministry and the Ghana Revenue Authority (GRA) have already begun nationwide consultations with businesses and traders to gather input and build public awareness on the proposed changes.
According to the Minister, the consultations will conclude in September 2025, and a draft VAT Amendment Bill is expected to be submitted as part of the 2026 Budget in October.
Among other changes, the proposed reforms include the abolition of the VAT flat rate scheme, removal of the cascading impact of GETFund and NHIS levies, and the introduction of a unified VAT rate.
The VAT registration threshold will also be raised to ease the burden on small and micro enterprises, while compliance will be enhanced through digital tools and public education campaigns.
Source: AdomOnline.com
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