Ghana’s Parliament has approved the COVID-19 Health Recovery Levy (Repeal) Bill, 2025 — a significant step toward easing the tax burden on businesses and households. Once the President assents, the move will officially abolish the one per cent levy introduced in 2021 to support pandemic-related expenditures.
The original levy, imposed on both local and imported goods and services, was designed as a temporary measure to mobilise revenue during the country’s COVID-19 response. However, because it was not deductible as an input tax, many businesses felt an added cost pressure at a time they were already navigating economic recovery.
Government’s decision to repeal the levy aligns with its broader commitment, outlined in the 2026 Budget, to streamline the indirect tax regime, reduce the cost of doing business, and support private-sector-led growth. The Finance Minister, Dr Cassiel Ato Forson, emphasised that the levy had outlived its purpose and that its removal forms part of a more transparent and growth-oriented VAT reform agenda.
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While the repeal is expected to result in a revenue loss of approximately GH¢3 billion, the Ministry of Finance remains confident that ongoing tax reforms and improved business activity will help offset this impact.
The parliamentary debate also highlighted broader concerns about tax consistency and the overall burden on citizens and enterprises — signaling the need for continued reforms that balance fiscal responsibility with economic competitiveness.
For the private sector, the repeal offers a welcome reduction in operational costs and a renewed signal of the government’s intention to make Ghana a more business-friendly environment. As further tax adjustments are anticipated under the VAT reform programme, businesses should stay alert to potential opportunities and compliance changes ahead.
Bizexcel Partners will continue to monitor these developments and provide insights to help organisations navigate Ghana’s evolving tax landscape.
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