“COVID-19 and NHIS Levies Will Be Scrapped in 2026” – Ato Forson
Finance Minister unveils plans to abolish COVID-19 and NHIS levies, streamline VAT, and introduce new tax legislation by 2026 to ease cost pressures and promote equity.
- COVID-19 Levy, NHIS Levy, and VAT Flat Rate to be removed in 2026
- A new unified VAT rate will be introduced under a reformed tax system
- Reforms aim to reduce cascading tax effects and support economic recovery
Finance Minister Dr. Cassiel Ato Forson has announced that the National Health Insurance Scheme (NHIS) Levy and the COVID-19 Levy will be abolished in 2026 as part of sweeping tax reforms aimed at easing the financial burden on Ghanaians.
Presenting the 2025 Mid-Year Budget Statement to Parliament on Thursday, July 24, Dr. Forson outlined a bold overhaul of Ghana’s Value Added Tax (VAT) system, promising a simpler, fairer, and more growth-driven tax regime.
He revealed that the government plans to finalise reforms to the VAT Act by October 2025 and include them in the 2026 Budget Statement.
“I want to assure Ghanaians that the COVID-19 Levy will be scrapped, the NHIS Levy will be restructured to remove its cascading effect, and the VAT Flat Rate and GETFund levy will also be removed. A single, unified VAT rate will be introduced,” he said.
Dr. Forson explained that these measures are part of a wider strategy to strengthen fiscal discipline, improve domestic revenue mobilisation, and make the tax system more efficient and equitable.
The reforms, he noted, are designed to support macroeconomic stability, encourage business growth, and ease cost-of-living pressures for the average Ghanaian.
A new VAT Bill reflecting these changes will be submitted to Parliament as part of the 2026 Budget process.
