COVID-19 Levy To Be Abolished By October 2025 – Ato Forson

Finance Minister Dr. Cassiel Ato Forson has reaffirmed the government’s decision to scrap the COVID-19 Health Recovery Levy, fulfilling a key promise of the National Democratic Congress (NDC).

Presenting the Mid-Year Budget Review in Parliament on Thursday, July 24, Dr. Forson announced that the levy introduced during the pandemic to support health sector spending will be abolished through a new Value Added Tax (VAT) amendment bill.

“The COVID levy will be abolished,” he stated plainly, adding that the overall effective VAT rate will be reduced as part of broader tax reforms.

Dr. Forson explained that the government is restructuring the VAT system to make it simpler, fairer, and more efficient. These reforms aim to eliminate distortions and cascading effects in the current tax structure.

He revealed that the Ministry of Finance, in collaboration with the Ghana Revenue Authority (GRA), is conducting a nationwide consultation with businesses and traders to gather feedback on the proposed VAT reforms. This consultation phase is expected to conclude by September 2025, with a draft VAT bill ready by October for inclusion in the 2026 budget.

Key highlights of the upcoming reforms include:

Elimination of the VAT flat rate scheme
Removal of cascading effects from GETFund and NHIS levies
Introduction of a unified VAT rate
Higher registration thresholds for small and micro businesses
Improved compliance through public education and digital systems

The reforms are part of ongoing collaboration with the International Monetary Fund (IMF) and are intended to improve revenue collection while easing the burden on businesses.

🚨COVID levy scrapped. Finance Minister announces removal under VAT Act by October 2025.🚨

Stay Tuned✅ pic.twitter.com/34C7BaHbpr

— MainEchoesofGovernance (@governance49853) July 24, 2025

Source: Ghanaweb.com