Finance Minister Dr. Cassiel Ato Forson has formally announced the abolition of the COVID-19 levy, describing the move as a significant step toward reducing the financial burden on Ghanaians and the private sector.

In a post on his X page on November 21, 2025, Dr. Ato Forson reaffirmed government’s promise to eliminate the levy, which was first introduced in 2021 to support pandemic-related spending.

“For emphasis, we promised to abolish the COVID-19 levy. With the support of this House, I am happy to announce that it is abolished!” he declared.

The measure forms part of the 2026 Budget Statement and Economic Policy presented to Parliament on November 13, 2025, which also outlined major VAT reforms aimed at reducing living costs and improving the business environment.

According to the Minister, removing the levy will inject GH¢3.7 billion back into the pockets of individuals and businesses in 2026. Additionally, the new VAT adjustments—including subjecting the GETFund and NHIL levies to input–output deductibility—are expected to cut business operating costs by 5%.

Overall, the VAT reforms are projected to provide nearly GH¢6 billion in relief to households and enterprises, making them one of the most substantial tax relief packages in recent years.

The COVID-19 levy, which imposed a 1% charge on goods and services, had long faced criticism from the public for worsening the cost of living amid economic hardship.