Speaker of Parliament, Alban Bagbin
The local economy faced a significant downturn in 2020 following the impact of the Coronavirus pandemic.
In response to the economic strain caused by the pandemic and the Russia-Ukraine War which followed not long after, the Akufo-Addo-led government introduced the COVID-19 Levy as a burden-sharing measure to support economic recovery from both internal and external shocks.
However, years after the pandemic, Ghanaians continue to pay this levy, with many describing it as a nuisance tax that has outlived its purpose.
The Assistant Commissioner of the Ghana Revenue Authority (GRA), Dominic Naab, explained on May 16, 2024, that the levy was essential for settling the government’s compounding debts incurred during the global pandemic.
He also emphasised that the GRA would continue collecting the COVID-19 Levy as it is enshrined in law.
But speaking on this during the 2025 Budget presentation in Parliament, the Minister of Finance, Dr. Cassiel Ato Forson, announced that the much-debated tax would be removed.
The COVID-19 Health Recovery Levy was initially introduced in Ghana as a special levy to support the country’s expenditures.
Enacted by Parliament as Act 1068 on March 31, 2021, the levy imposes a 1% charge on the supply of goods and services made in Ghana, as well as on imports, excluding exempt goods or services.
The Value Added Tax (VAT) is calculated on the value of the taxable supply, inclusive of the NHIL, GETFund Levy, and the COVID-19 Levy.
The funds collected under this levy are managed by the Ghana Revenue Authority.
SA/AE
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