Finance Minister Dr Cassiel Ato Forson has officially abolished the COVID-19 levy as part of the 2026 Budget, aimed at boosting household income, supporting businesses, and driving economic transformation.
Presenting the budget on Thursday, November 13, under the theme “Resetting for Growth, Jobs, and Economic Transformation,” Dr. Forson 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.
The Finance Minister explained that abolishing the COVID-19 levy alone will return GH₵3.7 billion to individuals and businesses, while the broader VAT reforms are expected to benefit households and enterprises by nearly GH₵6 billion.
Dr. Forson expressed confidence that these measures would stimulate economic activity, promote private sector growth, and provide much-needed relief to Ghanaians grappling with the high cost of living.
“By abolishing the COVID-19 levy, the government is putting money back into the pockets of individuals and businesses,” he said, emphasising that the reforms reflect a commitment to fairness, efficiency, and inclusive economic recovery.
Source: www.kumasimail.com
