The government maintains that the COVID-19 levy remains essential for addressing the ongoing financial repercussions of the pandemic, despite widespread calls from the business community for its repeal.
Leading up to the mid-year budget review, business leaders urged the government to remove several taxes they consider redundant, including the COVID-19 levy. Many businesses argue that the tax, initially introduced to mitigate the pandemic’s financial impact, has outlived its usefulness and now imposes a significant burden, making Ghana less attractive to investors.
In response, the government has defended the continuation of the COVID-19 levy. Abena Osei-Asare, Minister of State at the Finance Ministry, addressed the issue before the Public Accounts Committee of Parliament. She said that although the immediate threat of COVID-19 has diminished, the pandemic’s financial impacts are still being felt.
“The threat of COVID-19 is no longer present, but its impact remains. There are many expenditures we incurred during the pandemic that we still need to cover. The effects of COVID-19 are still with us, and the funds from the levy are being used to address these lingering issues. We still have to pay for vaccines,” Osei-Asare stated.
She added, “Since Parliament approved the COVID-19 levy and its projected revenues for 2024, it remains one of the sources of revenue we are collecting as a government.”
