Government Returns GH₵3.7 Billion to Citizens by Abolishing COVID-19 Levy
Finance Minister Dr. Ato Forson says the move provides relief to households and businesses, boosting disposable income and economic activity.
- COVID-19 Health Recovery Levy abolished, returning GH₵3.7 billion to households and businesses
- Measure aimed at boosting disposable income, reducing business costs, and supporting job retention
- Part of broader VAT reforms to ease financial pressures and stimulate economic growth
Finance Minister Dr. Cassiel Ato Forson has announced the abolition of the COVID-19 Health Recovery Levy as part of the 2026 Budget, returning GH₵3.7 billion directly to households and businesses.
“Mr. Speaker, by abolishing the COVID-19 levy, Government is putting GH₵3.7 billion in the pockets of individuals and businesses in 2026 alone,” Dr. Forson told Parliament.
The Minister described the measure as an immediate stimulus for the economy, aimed at increasing household disposable income, reducing operating costs for businesses, and supporting job retention.
This reform forms part of a broader Value Added Tax (VAT) package designed to ease financial pressures on consumers and stimulate growth. The government has also introduced complementary measures, including:
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Input Tax Deductions on Levies: Businesses can now claim GETFund and NHIL levies as deductions, lowering costs.
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Reduced Effective VAT Rate: The overall rate is reduced from 21.9% to 20%, making goods and services more affordable.
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Raised VAT Registration Threshold: Increased from GH₵200,000 to GH₵750,000 to benefit small and medium-sized enterprises.
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Targeted Industry Relief: VAT on mineral reconnaissance and prospecting abolished; zero-rating on locally manufactured textiles extended to 2028.
Dr. Forson said the budget is part of a national reset, consolidating economic gains, restoring confidence, and accelerating Ghana’s transformation.
“Confidence is returning, the Black Star is rising once more. Ghana is back, strong, and full of hope,” he added.
With inflation reduced from 54.1% in 2022 to 8% in October 2025, fiscal discipline restored, and the cedi stabilized, the Finance Minister said the government is committed to ensuring sustainable economic growth and inclusive prosperity.
