President John Dramani Mahama has signed into law the COVID-19 Health Recovery Levy Repeal Act, 2025, officially abolishing the 1% levy that had been imposed on goods, services, and imports.
The repeal marks a major step in the government’s broader tax reform agenda aimed at easing the financial burden on citizens and stimulating economic activity.
Speaking after signing the Act, President Mahama emphasized that the decision reflects his administration’s commitment to relieving pressure on households and businesses.
“This repeal is not just a policy change; it is a promise fulfilled to restore fairness to our tax system and support economic recovery,” he said.
“By removing this levy, we are putting badly needed resources back into the pockets of Ghanaians.”
According to the Ministry of Finance, the removal of the levy is expected to return an estimated GH¢3.7 billion to individuals and businesses in 2026 alone.
The government’s broader VAT reforms, which accompany the repeal, are projected to restore nearly GH¢6 billion to households and firms making this package one of the largest tax relief interventions in recent years.
Economic observers say the repeal is expected to lower the cost of doing business, reduce production costs, and provide breathing space for struggling sectors still recovering from post-pandemic shocks.
President Mahama reiterated that the initiative is part of a comprehensive strategy to revive growth and rebuild confidence in the economy.
“Our aim is simple to make life easier for Ghanaians and to create an environment where businesses can thrive,” he noted.
The repeal takes immediate effect following the presidential assent.
Story: Patrick Asford Boadu
