Ghana: Parliament Scraps Covid-19 Levy

Parliament has officially repealed the COVID-19 Health Recovery Levy Act, 2021 (Act 1068), which imposed a special tax on goods, services, and imports to raise revenue for COVID-19-related expenditures. The repeal follows the passage of the COVID-19 Health Recovery Levy (Repeal) Bill, 2025, after it underwent all necessary readings and debates in the House.

The COVID-19 levy was initially introduced to support pandemic-related expenses and ensure that essential health services were funded during the crisis. According to the Finance Committee report presented by its Chairperson, Mr Isaac Adongo, the repeal aligns with the government's comprehensive Value Added Tax (VAT) reform agenda, aimed at creating a more transparent, equitable, and growth-friendly consumption tax system.

The Committee noted that repealing the levy would result in a revenue loss of GH¢3 billion. However, the Minister of Finance, Dr Cassiel Ato Baah Forson, assured Parliament that ongoing tax reforms would stimulate business activities and ultimately increase tax revenue.

During debates, Minority Leader Mr Alexander Kwamena Afenyo-Markin criticised the government for imposing new taxes, such as the Energy Sector Levy and increased electricity tariffs, which he argued overburdened ordinary Ghanaians. He highlighted that citizens had been subjected to an 18% rise in electricity tariffs this year alone and criticised Parliament's approval of a USD 10 million tax waiver for Tata Consultancy Services Limited for the implementation of the Integrated Tax Administration System (ITAS) project under the Ghana Revenue Authority (GRA).

In response, Mr Adongo defended the repeal, stating that it was in the best interest of citizens, especially since Ghana is no longer facing the COVID-19 pandemic. He stressed that the government had collected GH¢3 billion annually for four years from the levy despite the pandemic having ended. Regarding the tax waiver for Tata Consultancy Services, Mr Adongo clarified that the agreement was inherited from the previous government as part of the International Monetary Fund (IMF) programme.

The repeal of the COVID-19 levy marks a significant step in easing the financial burden on Ghanaians while signalling the government's commitment to reforming the country's tax system.

Read the original article on Ghanaian Times.