The government has reaffirmed its commitment to abolishing the COVID-19 Health Recovery Levy by the end of 2025 as part of a broader tax reform agenda, Deputy Finance Minister Thomas Nyarko Ampem has said.
Speaking to Joy News, Mr. Ampem explained that the levy will be reviewed in line with the ongoing VAT rationalization process, a key pledge in the National Democratic Congress (NDC) manifesto. He emphasized that President Mahama’s administration is determined to eliminate “nuisance taxes,” as seen with the recent repeal of the Electronic Transaction Levy (E-Levy) and the betting tax.
“The COVID-19 levy will be considered alongside VAT reforms. If we complete the rationalization process, we expect to remove it by the end of the year,” he stated.
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He further noted that while additional tax reductions cannot be promised at this time, the government remains open to future repeals as the economy strengthens.
The 2025 Budget outlined plans to streamline the VAT system, including the removal of the COVID-19 levy, reclassification of health and education levies under VAT, and a reduction in eligible VAT-registered traders.
This move aligns with the administration’s broader strategy to ease the tax burden on businesses and individuals while fostering economic growth.
