The 2026 Budget Statement and Economic Policy, presented by Finance Minister Dr. Cassiel Ato Forson, has confirmed the long-awaited abolition of the COVID-19 Health Recovery Levy.
The tax was widely criticised by businesses and consumers as unnecessary and burdensome, as Ghanaians called for its abolition ahead of the budget presentation.
Introduced during the COVID-19 pandemic, the levy quickly became one of the most unpopular taxes in recent years, driving up the cost of goods and services at a time when many households and small enterprises were already struggling.
Its removal is a long-overdue policy that stifled economic activity and squeezed disposable incomes.
In Parliament, Dr. Forson noted that ending the levy would leave about GH₵3.7 billion in the hands of individuals and businesses in 2026.
While the government frames this as a stimulus, many observers view it simply as relief from a tax that should never have lingered long after the pandemic’s peak.
The COVID-19 Levy’s abolishment forms part of broader VAT reforms expected to ease the pressure on consumers and the private sector, returning a total of GH₵5.7 billion to the economy.
For many, this removal is an avoidable financial strain that has long hindered post-pandemic recovery.
