Finance Minister Dr. Cassiel Ato Forson has announced the abolishment of the COVID-19 aimed at boosting household income, supporting businesses, and driving economic transformation.
According to him, government's decision to scrap the levy is explicitly positioned as a powerful stimulus measure.
Speaking before the Parliament, the Finance Minister confirmed the direct financial impact of this single reform.
"Mr. Speaker, by abolishing the COVID-19 levy, Government is putting GH₵3.7 billion in the pockets of individuals and businesses in 2026 alone."
This substantial injection of GH₵3.7 billion back into the economy is designed to increase household disposable income and reduce the operating costs for businesses, thereby supporting job retention and market liquidity, he added
Presenting the budget on Thursday, November 13, under the theme “Resetting for Growth, Jobs, and Economic Transformation,” Dr. Forson also announced a series of VAT reforms designed to ease the tax burden on individuals and businesses.
“The new VAT reforms will abolish the COVID-19 levy, remove the decoupling of the GETFund and NHIS levy from the VAT tax base, and eliminate VAT on reconnaissance and prospecting of minerals,” he said.
He further noted that the effective VAT rate will be reduced from 21.9% to 20%, the VAT registration threshold increased from GH₵200,000 to GH₵750,000, and VAT zero-rating on locally manufactured textiles extended to 2028.
This substantial injection of GH₵3.7 billion back into the economy is designed to increase household disposable income and reduce the operating costs for businesses, thereby supporting job retention and market liquidity.