Dalex Finance Chief Executive Officer Joe Jackson has welcomed Parliament’s decision to abolish the COVID-19 Health Recovery Levy, describing the tax as regressive and unnecessary in the current economic environment.
Speaking on The Key Points on TV3 on Saturday, November 29, Mr. Jackson argued that the levy outlived its purpose long ago and placed an unfair burden on already struggling households.
“Covid is now a memory for us. A levy called COVID-19 has no business being on the tax book; throw it out. I am pleased that they got it away. It was a nuisance tax,” he said.
He stressed that the levy disproportionately affected low-income earners, noting that its structure made it one of the most indiscriminate taxes introduced in recent years. “The COVID-19 tax was an indiscriminate tax. It doesn’t matter who you are; you will pay. It hit the disadvantaged in society harder than the wealthy in society,” he added.
Parliament on Friday passed the Value Added Tax Bill, 2025, which formally removes the COVID-19 Health Recovery Levy from the tax system. The move gives effect to a key commitment announced by the government in the 2025 Budget and Mid-Year Fiscal Policy Review aimed at making the VAT regime fairer, simpler and more supportive of economic growth.
The scrapping of the levy forms part of broader tax reforms designed to ease pressure on consumers and encourage business expansion.
