President John Dramani Mahama has formally repealed the COVID-19 Health Recovery Levy, fulfilling a major campaign pledge and marking a significant shift in Ghana’s tax policy. The President assented to the COVID-19 Health Recovery Levy Repeal Act 2025 on Wednesday, removing the one per cent charge that has applied to goods, services and imports since 2021.
The repeal, set to take effect January 2026, comes as part of government’s broader plan to eliminate so-called “nuisance taxes” and ease the financial burden on households and businesses amid rising living costs.
A Levy That “Outlived Its Purpose”
The COVID-19 Health Recovery Levy was introduced in March 2021, during the peak of the pandemic, to support national recovery efforts. Although presented as a temporary measure, it remained in force long after COVID-19 pressures had subsided.
President Mahama criticised the circumstances under which the tax was introduced, describing it as unfair and inconsistent with earlier promises by the previous administration.
“This is the COVID Health Recovery Repeal Act 2025, and it’s my honour and privilege to sign to repeal the COVID levy. Promise made, promise delivered,” he declared.
He added that Ghana had become “one of the only countries still being taxed for a pandemic that had passed,” insisting that the levy had long ceased to be justified.
Relief for Consumers and Businesses
The removal of the tax is expected to bring modest but meaningful relief to the retail, manufacturing, and service sectors, which have long complained that the levy increased operating costs and contributed to inflationary pressures.
By eliminating the one per cent additional charge on top of VAT, NHIL, and GETFund levies, the government aims to boost consumer confidence, reduce production costs, and help stabilise prices in the early months of 2026.
Fulfilling a Campaign Promise
President Mahama reminded Ghanaians that scrapping the levy was a central plank of the New Democratic Congress campaign message.
“A lot of Ghanaians have disliked this tax, and today I am pleased that on the 10th of December 2025, I’ve signed the repeal act to remove the 1% COVID levy.”
The President also stressed his administration’s commitment to building a fairer tax regime that encourages compliance and supports economic recovery.
Implementation Guidelines Coming Soon
The Ministry of Finance is expected to issue detailed implementation guidelines ahead of the January 2026 rollout, ensuring businesses adjust their pricing and accounting systems in time.
The repeal forms part of a wider economic reform agenda aimed at restoring stability, rebuilding business confidence, and alleviating pressure on Ghanaian households.
