Mahama Delivers on Tax Relief Promise as COVID-19 Levy Finally Scrapped
By: Nana Kwasi Roka
President John Dramani Mahama has officially repealed the COVID-19 Health Recovery Levy, completing a key campaign promise to eliminate what many Ghanaians considered an unnecessary financial burden.
The President on Wednesday assented to the COVID-19 Health Recovery Levy Repeal Act, 2025, effectively abolishing the one per cent charge placed on goods, services and imports since 2021. The levy, introduced at the height of the pandemic to support national recovery, remained in effect long after COVID-19’s peak, drawing widespread criticism.
Parliament approved the repeal last month as part of the government’s wider effort to eliminate “nuisance taxes” and reduce the rising cost of living.
Originally enacted under Act 1068, the levy added an extra one per cent tax to taxable supplies – including imports – alongside existing taxes such as VAT, NHIL and the GETFund levy. Although introduced as a temporary measure, it persisted for years, affecting both businesses and consumers.
With the President’s assent, the repeal takes effect in January 2026, offering relief at the start of the new fiscal year.
Speaking before signing the Act, President Mahama said the levy “had long outlived its purpose” and placed an unfair burden on ordinary households.
“Promise made, promise delivered,” he declared. “A lot of Ghanaians have disliked this tax, and today I am pleased that I’ve signed the repeal act to remove the 1% Covid levy.”
He criticised the circumstances under which the previous administration introduced the levy, noting that it contradicted earlier assurances. According to him, Ghana remained “one of the only countries where we’re being taxed for the pandemic that had passed.”
The repeal is expected to provide modest relief to consumers and businesses, particularly in the retail and service sectors where the levy contributed to higher operational costs. It also aligns with the government’s broader tax reforms aimed at improving compliance and restoring confidence in the economy.
