Minister of Finance, Dr. Ato Forson, has announced the immediate abolition of the COVID-19 Health Recovery Levy as part of the 2026 Budget Statement presented in Parliament on Thursday, November 13, 2025.
Speaking during the presentation, Dr. Forson said the move is part of a broader reform of Ghana’s Value Added Tax (VAT) system aimed at making it fairer, simpler, and more efficient. “For emphasis, we promised to abolish the COVID-19 levy. With the support of this House, I am happy to announce today that it is abolished,” he stated.
The minister explained that the abolition of the levy will put GH¢3.7 billion back into the pockets of individuals and businesses in 2026 alone. In addition to this measure, the government is introducing a series of VAT reforms including: Reducing the effective VAT rate from 21.9% to 20%, raising the VAT registration threshold from GHS 200,000 to GHS 750,000, abolishing VAT on mineral exploration and reconnaissance, extending the zero-rating of VAT on locally manufactured textiles to 2028, and allowing GETFund and NHIL levies to be subject to input tax deductions.
READ: 2026 Budget: Gov’t uncovers $33bn fake imports, orders forensic audit – Finance Minister
Dr. Forson emphasized that the reforms are designed to reduce the cost of doing business, stimulate investment, and create a more business-friendly economy. “All together, the VAT reforms are expected to give back nearly GH¢6 billion to businesses and households,” he said.
The Finance Minister also highlighted plans to leverage digital solutions for VAT collection, including Fiscal Electronic Devices (FED) and a VAT reward scheme to encourage compliance. These measures, he said, will enhance revenue mobilisation, simplify compliance, and strengthen the credibility of Ghana’s fiscal framework.
Dr. Forson concluded that the reforms mark a turning point in Ghana’s VAT administration, supporting both economic growth and fiscal stability while easing the burden on taxpayers.
Source: Starrfm.com.gh
