President John Dramani Mahama has assented to the COVID-19 Health Recovery Levy Repeal Bill, 2025, formally abolishing the 1% levy imposed on goods, services and imports since March 31, 2021.
The new law, now known as the COVID-19 Health Recovery Levy Repeal Act, 2025, fulfils a major campaign promise by the President, who has consistently described the levy as unnecessary and “difficult to comprehend.”
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The signing ceremony, held at the Jubilee House, was witnessed by key government officials, including the Clerk to Parliament Ebenezer Ahumah Djietror, Finance Minister and Acting Defence Minister Dr Cassiel Ato Forson, Chief of Staff Julius Debrah, Senior Legal Advisor Marietta Brew, Attorney-General Dr Dominic Ayine, Presidential Advisor Joyce Bawa Mogtari, and Communications Minister Samuel Nartey George. The repeal marks a significant step in the government’s plan to streamline the indirect tax regime and reduce the cost of doing business.
In the 2025 Budget, the government announced its intention to modernise Ghana’s consumption tax structure, stimulate private-sector-led growth, and improve VAT compliance.
COVID-19 levy
According to the Finance, the COVID-19 levy had outlived its purpose, and its removal forms part of a broader VAT reform agenda aimed at creating a more transparent and equitable tax environment. The government estimates that the repeal will put over GH¢3 billion back into the pockets of Ghanaians.
The move triggered debate in Parliament, with the Minority cautioning that repealing taxes often coincides with the subtle introduction of new ones, citing past instances such as the Energy Sector Levy and recent tariff adjustments.
Minority Leader Afenyo-Markin noted that the repeal should not be celebrated in isolation, pointing to the 18% electricity tariff increase and lingering concerns about the overall tax burden.
The government has assured that other tax reform measures will compensate for the revenue shortfall created by eliminating the levy.