Finance Minister Dr. Cassiel Ato Forson has announced that the COVID-19 Levy and the National Health Insurance (NHIS) Levy will be abolished in 2026 as part of a major overhaul of Ghana’s tax system.
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Speaking during the presentation of the 2025 Mid-Year Budget in Parliament, Dr. Forson outlined sweeping reforms to the Value Added Tax (VAT) system, aimed at easing the tax burden on Ghanaians and promoting economic growth.
“I would like to reassure Ghanaians that the COVID-19 Levy will be abolished, the effective VAT rate will be reduced, the cascading effect of the NHIS Levy will be removed, and a unified VAT rate will be introduced,” he stated.
Other proposed changes include:
- Removal of the VAT Flat Rate Scheme
- Elimination of the GETFund component from the VAT
- Introduction of a new VAT Bill by October 2025
These tax policy shifts, expected to be included in the 2026 Budget, are designed to streamline public finance, enhance domestic revenue mobilization, and restore macroeconomic stability.
Dr. Forson emphasized that the reforms align with broader goals to reduce economic hardship, promote inclusive growth, and build a more equitable and transparent tax system.
