By: Belinda Nketia
The Government of Ghana has announced that the COVID-19 Health Recovery Levy will remain in place for the next few months, despite earlier promises to abolish it, due to ongoing commitments under the country’s programme with the International Monetary Fund (IMF).
The clarification was made by Deputy Government Spokesperson Shamima Muslim on Tuesday, July 15, 2025 during an interview on the GTV Breakfast Show with focus on the Mahama-led administration’s first six months in office
According to the Government Spokesperson, although several taxes have been repealed since Mahama assumed office in January 2025, the COVID levy could not be scrapped immediately because of Ghana’s negotiated fiscal path with the IMF.
“COVID levy was the only nuisance levy that we couldn’t abolish because it was part of our IMF programme,” she said. “We’ve discussed and negotiated with the IMF, and they’re in agreement about it.”
She added that the levy will be reviewed after the government implements a VAT rationalization regime by September, which would create the space to remove it entirely.
“The work is ongoing. It’s going to be with us for a few months until the VAT rationalization is done to allow for us to remove the COVID levy from our books,” she explained.
On April 2, 2025, President Mahama signed several bills into law, including the repeal of the Electronic Transfer Levy (E-Levy), the Betting Tax, and the Emissions Levy. Other fiscal reforms signed into law include the VAT (Amendment) Bill, Income Tax (Amendment) Bill, Petroleum Revenue Management (Amendment) Bill, Public Financial Management (Amendment) Bill, Earmarked Funds Capping and Realignment Bill, Energy Sector Levy Act, Gold Board Bill, and the Growth and Sustainability Levy Act.
The government says these measures are aimed at easing the tax burden on Ghanaians while restoring fiscal discipline and improving economic confidence.
President John Dramani Mahama’s first six months in office have seen a bold push to realign Ghana’s fiscal structure, with the repeal of several controversial taxes and a sweeping reform of revenue legislation. However, the COVID-19 Health Recovery Levy commonly known as the COVID levy remains untouched, at least for now.
