By: Love Wilhelmina Abanonave
Ghana’s Minister for Finance, Cassiel Ato Forson has announced significant tax reforms in the 2025 Mid-Year Budget Review presented to Parliament yesterday, July 24, 2025. According to him, government plans to abolish the COVID-19 levy, reduce the effective VAT rate, and remove the punitive cascading effect of the GETFund and NHIA levy.
“I would like to reassure the people of Ghana that at a minimum, the Covid levy will be abolished and the effective VAT rate will be reduced, the punitive cascading effect of the GETFund and NHIA levy will be also removed’’ he reiterated.
The Finance Minister announced that the reforms are aimed at addressing the distortions and cascading effects inherent in the current VAT structure. To support this effort, he mentioned that the Ministry was committed to seeking technical assistance from the International Monetary Fund (IMF) while engaging the Ghanaian people.
“I am pleased that we have successfully completed our engagement with the International Monetary Fund(IMF) with regards to the tax reform’’, he said.
According to Mr Ato Forson, the Ghana Revenue Authority, in collaboration with the Ministry of Finance, is undertaking a nationwide consultation process to sensitize key players in the trade and industry sector on the VAT reform.
The Minister said the Ministry of Finance hopes to complete the consultation process by the end of September 2025 to enable it prepare a new VAT bill by October 2025 to present to Parliament as part of the 2026 budget statement.
