By: Akua Oteng Amponsah
The government has introduced a major overhaul of the country’s tax structure in the 2026 Budget, with Finance Minister Dr. Cassiel Ato Forson confirming the total removal of the COVID-19 levy a move aimed at easing financial pressure on both households and businesses.
During his budget presentation on Thursday, November 13, delivered under the theme “Resetting for Growth, Jobs, and Economic Transformation,” Dr. Forson outlined a broad package of VAT reforms intended to simplify the tax system and stimulate economic activity.
According to the Finance Minister, “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 added that additional changes would further lighten the tax load. These include reducing the effective VAT rate from 21.9% to 20%, raising the VAT registration threshold from GH₵200,000 to GH₵750,000, and extending the zero-rating on locally produced textiles until 2028.
Dr. Forson highlighted the substantial financial impact these measures are expected to have, explaining that the removal of the COVID-19 levy alone will return GH₵3.7 billion to Ghanaians.
In total, the full package of VAT reforms is projected to provide nearly GH₵6 billion in relief to households and businesses.
He however expressed optimism about the broader economic effects of the reforms, noting that they are designed to energize the private sector and ease the strain of 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, stressing that the approach prioritizes fairness, efficiency, and inclusive recovery.
