Stakeholder Consensus Grows on Comprehensive Tax Reform Package
The International Monetary Fund (IMF) has thrown its full support behind Ghana’s planned removal of the COVID-19 Health Recovery Levy, a move expected to feature prominently in the upcoming mid-year budget review on Thursday, July 24, 2025.
The endorsement follows a series of high-level engagements between the government, the IMF, and key players in the private sector as part of broader efforts to restructure Ghana’s tax system for economic recovery and sustainable growth.
IMF Backs Government’s Fiscal Strategy
The removal of the COVID-19 levy, introduced in 2021 to support pandemic-related expenditures, has been widely accepted by stakeholders as part of a sweeping tax reform initiative being championed by the Ministry of Finance and the Ghana Revenue Authority (GRA).
Edward Apenteng Gyamera, Commissioner of the Domestic Tax Revenue Division at the GRA, confirmed the IMF’s endorsement in an interview with Joy Business. He revealed that engagements with stakeholders indicate unanimous support for eliminating the levy and adjusting value-added tax (VAT) mechanisms to enhance business operations.
Businesses Welcome Relief Measures
During a recent stakeholder forum in Accra, business associations expressed optimism about the direction of the tax reform package, highlighting the removal of cascading tax effects and the potential to treat levies as deductible VAT inputs.
“The removal of the COVID-19 levy and treating some levies as part of the VAT mechanism are ideas that have received general acceptance,” Mr. Gyamera noted. “These changes, once implemented, will help reduce the cost of doing business while supporting domestic revenue mobilization.”
COVID-19 Levy: A Brief Background
The COVID-19 Health Recovery Levy was established under Act 1068 in 2021, during the administration of President Nana Addo Dankwa Akufo-Addo. It imposed a 1% levy on supply of goods and services and imports to raise revenue for COVID-19-related expenditures. The proposed repeal now signals a shift towards post-pandemic fiscal consolidation.
As Finance Minister Dr. Casel Ato Forson prepares to deliver the 2025 mid-year budget review, the government appears poised to adopt key tax policy reforms that reflect stakeholder consensus and IMF recommendations.
