Prez. Mahama Scraps COVID-19 Levy
By Joyce Akosua Ayine
President John Dramani Mahama has officially signed the COVID-19 Health Recovery Levy Repeal Act, 2025, bringing an end to the 1% tax that has applied to goods, services, and imports since the COVID-19 era. The move forms part of government’s broader efforts to eliminate what it describes as “nuisance taxes” and provide relief to households and businesses facing rising living costs.
The repeal, which takes effect in January 2026, follows Parliament’s approval last month. By removing the levy, government hopes to ease the financial burden on consumers and support the business community as the economy continues its post-pandemic recovery.
The COVID-19 Health Recovery Levy was first introduced in 2021 under Act 1068 at the height of the pandemic. It was enacted on March 31, 2021, as an additional revenue measure to support health-related expenditures and national recovery efforts. The law required individuals and businesses to pay a 1% charge on the value of all taxable supplies of goods and services, as well as on most imports, except items that were exempt under Ghana’s VAT rules.
In practice, the levy was applied on top of existing consumption taxes such as the Value Added Tax (VAT), the National Health Insurance Levy (NHIL), and the GETFund levy. This meant that consumers often paid several layers of taxes at the point of purchase, contributing to the high cost of basic goods and services.
With its repeal now formally approved, government officials say the change will bring meaningful relief to Ghanaians. Businesses are also expected to benefit from lower operational costs, particularly industries dependent on imported raw materials or equipment.
The scrapping of the levy marks a significant step in the administration’s tax reform agenda aimed at simplifying the tax system, stimulating economic activity, and improving affordability for citizens at a time when economic pressures remain high.
