President John Dramani Mahama has formally signed into law the COVID-19 Health Recovery Levy Repeal Act, 2025, abolishing the 1 per cent levy that had remained in force years after the pandemic ended.
Speaking after assenting to the Bill on Wednesday, December 10, President Mahama described the move as the fulfilment of a key campaign pledge, declaring, “Promise made, promise delivered.”
He said the repeal was necessary to relieve Ghanaians of a tax that had become increasingly unpopular and economically burdensome.
President Mahama argued that Ghana had remained among the few countries still taxing its citizens for a pandemic long after its effects had subsided.
“To the shock of most Ghanaians, after the pandemic was over and after elections were done, a 1 per cent tax was imposed in the name of COVID recovery,” he said, adding that the levy was widely rejected by households and businesses.
The repeal forms part of a broader overhaul of Ghana’s VAT regime following the passage of the Value Added Tax Bill, 2025, by Parliament.
The reforms eliminate the COVID-19 levy entirely and are expected to return an estimated GH¢3.7 billion to individuals and businesses in 2026, with nearly GH¢6 billion projected to be released back into the economy overall.
President Mahama said the changes reflect his administration’s commitment to fairness, economic growth and easing the cost of doing business. Government expects the revised VAT framework to boost investor confidence, support local industries and create jobs, particularly in sectors such as mining and textiles.
Source: Starrfm.com.gh
