President John Dramani Mahama has addressed growing public concern over the continued existence of the COVID-19 Health Recovery Levy, despite his administration’s sweeping tax reform efforts.
The President pointed to Ghana’s ongoing International Monetary Fund (IMF) programme as the main reason for retaining the levy for now.
Speaking during a national address on Wednesday, May 7, to mark 120 days since returning to office, President Mahama acknowledged public frustration but reaffirmed his government’s commitment to tax relief.
“I promised to scrap the E-levy, COVID levy, the 10% levy on bet winnings, and the Emissions Levy within my first 90 days,” he said. “We have delivered on three of these four specific tax repeals as promised.”
The COVID-19 levy, he explained, remains due to “intricate linkages” with Ghana’s IMF-backed economic programme. “As a value-added tax, we’ve agreed with our multilateral partners to include it in a broader VAT rationalisation exercise set for September this year,” the President said.
Despite this delay, President Mahama stressed that his government has gone beyond its initial tax reform pledges. “We have significantly exceeded our 120-day promises regarding overall tax reform,” he said.
He highlighted the repeal of several unpopular taxes, including the E-levy, emissions levy, and betting tax signed into law on April 2, 2025, as proof of his administration’s resolve.
“This swift legislative action underscores our commitment to providing relief and creating a more favourable economic environment,” he added.
In addition, the government has passed major economic reform bills, including amendments to the VAT and income tax laws, the removal of VAT on motor vehicles, the Public Financial Management Bill, and the Growth and Sustainability Levy Act.
“Change is not just about promises but it is about action, he vowed to restore fairness to the tax system and rebuild public trust,” President Mahama said.
