The Deputy Finance Minister, Thomas Nyarko Ampem, has announced that Ghana’s COVID-19 Health Recovery Levy will be abolished by the end of 2025 as part of the government’s tax rationalization strategy.
The levy, introduced during the pandemic to support economic recovery, has been a contentious tax burden for businesses and consumers. Its planned removal aligns with the government’s broader commitment to scrapping “nuisance taxes”, which has already seen the abolition of the Electronic Transaction Levy (E-levy) and the betting tax
A Shift in Tax Policy
The COVID-19 levy’s repeal will be included in Ghana’s 2025 Budget, which aims to reform the VAT system, incorporating health and education levies, reduce the number of VAT-registered traders to streamline tax compliance, and ease financial pressure on businesses and consumers to support economic growth.
Economic Implications
While the move signals tax relief, questions remain about how the government will compensate for lost revenue. The Deputy Finance Minister hinted at a phased approach, ensuring fiscal stability while balancing tax reduction efforts
As the economy recovers, will more tax reforms follow, or will revenue constraints force a reversal of tax cuts? Investors and businesses will be watching closely for further fiscal policy shifts.
