Ghana’s Parliament has unanimously approved the COVID-19 Health Recovery Levy (Repeal) Bill, 2025, effectively abolishing the 1% levy on goods and services that was introduced in 2021 to fund the country’s pandemic response and recovery efforts.
The repeal, which received bipartisan support, will take effect from January 1, 2026, and is projected to return approximately GH¢3.7 billion directly to households and businesses next year.
Presenting the 2026 Budget Statement on Tuesday, Finance Minister Dr. Cassiel Ato Forson described the scrapping of the levy as a key component of government’s broader tax relief package aimed at reducing the cost of living and stimulating economic growth.
“The COVID-19 levy served its purpose during a difficult period, but the time has come to remove this burden from Ghanaians,” Dr. Ato Forson told Parliament. “By eliminating this levy and implementing other VAT reforms, we are putting more money back into the pockets of citizens and reducing operational costs for businesses by up to 5%.”
The repeal forms part of a series of VAT-related measures in the 2026 Budget, including improved input tax deduction mechanisms and higher registration thresholds for small businesses.
Economists have welcomed the move, noting that the levy’s removal will provide immediate relief to consumers still grappling with inflationary pressures while enhancing the competitiveness of local enterprises.
Speaker of Parliament Alban Bagbin commended members for the swift passage of the bill, stating, “This House has once again demonstrated its commitment to the welfare of the Ghanaian people.”
The Ministry of Finance has indicated that further details on the implementation of the repeal and accompanying VAT adjustments will be published in the coming weeks.
With the COVID-19 levy now set to become history, many Ghanaians are looking forward to a lighter tax burden as the country heads into 2026.