By Eugene Davis
Parliament has approved the COVID-19 Health Recovery Levy (Repeal) Bill, 2025, a move expected to result in a revenue loss of GH₵3.0 billion.
The Minister for Finance explained that the levy—introduced in 2021 to support Ghana’s pandemic response—had outlived its original purpose. Its repeal forms part of government’s broader VAT reform agenda aimed at creating a more transparent, equitable and growth-friendly tax system.
The Committee noted that the COVID-19 Health Recovery Levy was introduced during the pandemic to raise additional revenue for Ghana’s health response and economic recovery. Under Act 1068, a 1% levy was charged on the supply and import of non-exempt goods and services, but it could not be claimed as an input tax deduction—effectively increasing costs for businesses and households.
In the 2025 Budget, government announced plans to streamline the indirect tax system and lower the cost of doing business as part of wider efforts to boost growth and improve VAT compliance. Repealing Act 1068 was highlighted as a key step in this reform agenda.
The finance minister explained that the levy had served its purpose and its removal would support a more transparent and growth-friendly tax system. He therefore urged Parliament to approve its repeal.
The Committee observed that eliminating the levy would result in a revenue loss of GH₵3.0 billion. However, the Minister assured members that ongoing tax reforms are expected to stimulate business activity and ultimately increase overall tax revenue.
