A Political Science lecturer at the University of Ghana, Dr Joshua Zaato, has questioned the government’s decision to abolish the COVID-19 Health Recovery Levy, arguing that the funds could have supported critical national programmes.
Speaking on TV3’s Key Points, he stated, “I wouldn’t have removed it; this money would have done something for the Big Push. Again, you have a serious problem of farmers experiencing glut across the country, so I could have invested this money in the farmers.”
Dr. Zaato maintained that the proceeds from the levy could have strengthened large-scale development initiatives, including the proposed Big Push infrastructure programme.
He emphasised that the removal limits potential revenue sources that could support farmers and boost agricultural productivity.
The levy was a 1% charge on VAT-exclusive goods and services introduced by the previous New Patriotic Party (NPP) administration in 2021. It was created to raise revenue for COVID-19-related expenditures and support economic recovery after the pandemic’s fiscal impact.
The levy was removed under the current NDC administration led by President John Dramani Mahama as part of reforms to streamline Ghana’s tax structure.
The government argued that the levy had outlived its purpose since the peak of the pandemic had passed. Its removal was also presented as a measure to ease the cost burden on households and businesses while improving the fairness of the VAT system.
