Mahama Abolishes COVID-19 Levy

President John Dramani Mahama has assented to the COVID-19 Health Recovery Levy Repeal Act, 2025, paving the way for the removal of the 1% levy on goods, services, and imports from January 2026.

The President’s signature on Wednesday, December 10, finalizes the repeal, following Parliament’s approval last month. This move is part of the government’s broader strategy to reduce what it terms ‘nuisance taxes’ and provide relief to both households and businesses.

The COVID-19 Health Recovery Levy, initially introduced in 2021 through the COVID-19 Health Recovery Levy Act (Act 1068) on March 31, was implemented as a key component of Ghana’s pandemic recovery plan.

The 1% levy applied to the value of all taxable goods and services within Ghana, as well as imports, with exceptions for items already exempt under Value Added Tax (VAT) regulations. Funds generated were earmarked to strengthen the nation’s healthcare infrastructure, cover COVID-19 related expenses, and bolster fiscal reserves.

Government officials have indicated the repeal demonstrates a commitment to easing the economic burden on citizens. Further details on the specific impact on prices and consumer spending are expected in the coming weeks. The Ministry of Finance is expected to issue a comprehensive statement outlining the implementation timeline and anticipated benefits.

The removal of this levy is anticipated to be welcomed by traders and importers who have long argued it increased the cost of doing business. Consumer advocacy groups are also hopeful that the savings will be passed on to the public.

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