Parliament has approved the repeal of the COVID-19 Health Recovery Levy, marking the end of a tax introduced at the peak of the pandemic to raise revenue for health-related spending and economic recovery.
The decision follows the government’s pledge in the 2025 Budget to simplify the indirect tax system, reduce the cost of doing business and support private-sector-led growth.
Finance Minister Dr. Cassiel Ato Forson told the House that the levy had outlived its purpose and that its removal formed part of a broader VAT reform agenda intended to create a more transparent and growth-friendly tax regime.
He urged MPs to back the measure, noting that scrapping the levy is expected to return more than GH¢3 billion to the pockets of Ghanaians. He assured that other tax reforms would address the anticipated revenue gap.
The Minority, however, questioned the impact of the repeal, warning that government often removes taxes only to introduce new burdens “through the backdoor.”
The Minority Leader cited the Energy Sector Levy and increases in electricity tariffs as reasons the repeal should not be viewed in isolation.
