President John Dramani Mahama has signed the COVID-19 Health Recovery Levy Repeal Act, 2025, confirming the removal of the one percent levy introduced during the pandemic.
The repeal, assented to on Wednesday, December 10, takes effect in January 2026 and completes government’s plan to phase out taxes it considers burdensome to households and businesses.
Parliament approved the repeal in November as part of a wider strategy to ease the cost of living and streamline the tax regime.
The levy, established under the COVID-19 Health Recovery Levy Act (Act 1068) in March 2021, was applied to the value of taxable goods, services and imports, excluding VAT-exempt items.
The levy was created to support pandemic-related spending, strengthen health systems and help rebuild fiscal buffers after COVID-19 severely strained public finances.
Public calls for its removal intensified over time as economic conditions tightened.
Many Ghanaians argued that the levy had outlived its purpose, noting that it increased the cost of goods and services without a clear link to ongoing COVID-19 needs.
Critics also stressed that maintaining the tax during a period of inflation and rising living costs placed additional pressure on consumers and small businesses.
