Government will abolish NHIS Levy, COVID-19 Levy in 2026 – Ato Forson
Finance Minister Dr. Cassiel Ato Forson has announced a comprehensive overhaul of the Value Added Tax (VAT) regime as part of broader efforts to ease the tax burden on Ghanaians and promote a fairer, more growth-oriented fiscal framework.
Presenting the 2025 Mid-Year Budget Statement to Parliament on Thursday, July 24, Dr. Forson outlined sweeping changes the Mahama administration intends to implement under the VAT Act. The reforms are expected to be finalised by October 2025 and reflected in the 2026 Budget.
“I would like to reassure Ghanaians that the COVID-19 Levy will be abolished, the VAT Flat Rate will be reduced, and the punitive, cascading effects of the NHIS Levy and GETFund will be removed,” Dr. Forson announced. “We will also eliminate the VAT Flat Rate altogether and implement a unified VAT Rate.”
The proposed changes aim to streamline the tax structure, eliminate distortions, and improve efficiency across the system. Dr. Forson explained that the reforms are part of a broader strategy to support economic recovery, strengthen public financial management, and reinforce monetary policy discipline.
“These tax measures are designed not just to raise revenue, but to create a more equitable and investor-friendly environment that supports inclusive growth,” he said.
He also confirmed that a new VAT Bill will be drafted by October 2025 and presented to Parliament in 2026 as part of the next Budget Statement.
According to Dr. Forson, the reforms are aligned with government’s wider agenda to diversify the economy, boost domestic revenue mobilisation, and alleviate financial pressures on households and businesses.
“Our goal is to rebuild macroeconomic stability and restore public confidence, while ensuring that our tax system works for all Ghanaians—not just a few,” he concluded.
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