By Ruth Serwaa Asare
Finance Minister, Dr. Cassiel Ato Forson, has announced the abolition of the COVID-19 Health Recovery Levy, a move he says will put GH₵3.7 billion back into the pockets of Ghanaians in 2026.
Presenting the 2026 Budget Statement and Economic Policy to Parliament on Thursday, Dr. Forson described the decision as part of a broader effort to make Ghana’s tax system “more equitable, transparent, and business-friendly.”
“Mr. Speaker, I am happy to announce that today, the COVID-19 levy is accordingly abolished,” he declared to applause in the House.
The Finance Minister explained that the removal of the levy, alongside other VAT reforms, will help reduce the cost of doing business by 5% and ease pressure on small and micro enterprises.
He further noted that the new VAT reforms, which include reducing the effective VAT rate from 21.9% to 20% and raising the VAT registration threshold from GH₵200,000 to GH₵750,000, are expected to return nearly GH₵6 billion to households and businesses. “We give it to you, six billion cedis, Mr. Speaker,” Dr. Forson added, emphasizing the government’s commitment to easing the tax burden and stimulating economic growth.
The 2026 budget, themed around economic transformation and inclusive growth, builds on what the Minister called the “stability of 2025,” aiming to deliver more jobs, stronger industries, and better public services for all Ghanaians.
