The government will scrap the COVID-19 Health Recovery Levy and the VAT flat rate scheme as part of a new Value Added Tax (VAT) bill set to be presented to Parliament, Finance Minister Dr. Cassiel Ato Forson has announced.
Delivering the 2025 Mid-Year Budget Review in Parliament on Thursday, July 24, Dr. Forson said the new VAT bill will streamline the VAT regime, enhance compliance, and reduce the burden on businesses and consumers.
“Mr. Speaker, the COVID-19 Health Recovery Levy and the VAT flat rate will be repealed under the new VAT Bill that will be presented to this House shortly,” Dr. Forson stated.
He explained that the move is part of broader tax policy reforms aimed at creating a more efficient, equitable, and growth-oriented tax system.
The COVID levy, introduced in 2021, imposed a 1% charge on VAT-exclusive goods and services to support pandemic recovery efforts. The VAT flat rate scheme applied a simplified 3% VAT rate, mostly for retailers, instead of the standard VAT structure.
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According to the Finance Minister, the new VAT bill is also expected to help improve revenue mobilisation without imposing new burdens on citizens or businesses, in line with government’s pledge to increase domestic revenue in a fair and sustainable manner.
Dr. Forson assured Parliament that the tax reforms will reflect inputs from key stakeholders and will support government’s goal of building a resilient post-COVID economy.
Source: Starrfm.com.gh
