The abolition of the COVID-19 Health Recovery Levy is expected to inject about GH¢3.7 billion into Ghana’s economy in 2026, providing a major boost to businesses and households, a legal practitioner has said.
Madam Elsie Appau-Klu, Lawyer and Technical Advisor to the Commissioner-General of the Ghana Revenue Authority, said the tax relief formed part of broader reforms aimed at reducing the cost of doing business and stimulating economic growth.
She explained that the removal of the levy would leave more disposable income in the hands of individuals and enterprises, improving liquidity and supporting business expansion.
According to her, the expected GH¢3.7 billion that will remain within the economy is likely to enhance consumer spending and create new opportunities for businesses, particularly small and medium-sized enterprises.
Madam Appau-Klu noted that increased liquidity could enable firms to reinvest in operations, expand production and improve service delivery, thereby strengthening overall economic activity.
She said the tax reforms were carefully designed to ease financial pressures on businesses while encouraging compliance and broadening participation in the tax system.
The legal practitioner added that reducing tax burdens would improve profit margins and enhance competitiveness, positioning Ghana as a more attractive destination for investment.
She further indicated that the policy could help stimulate demand across key sectors as consumers benefit from increased purchasing power.
Madam Appau-Klu emphasised that while taxation remained a critical source of government revenue, such reforms were necessary to balance revenue mobilisation with economic growth.
She said sustained private sector expansion would ultimately support long-term revenue generation through a broader and more compliant tax base.
Madam Appau-Klu urged businesses to comply with the revised tax framework and avoid charging abolished taxes, noting that adherence to the new policies would strengthen confidence in the system.
She also encouraged consumers to verify transactions to ensure they are not subjected to unauthorised charges.
She stressed that a transparent and efficient tax system, supported by both businesses and citizens, would be essential to driving economic growth and strengthening Ghana’s fiscal position.
