Finance Minister Dr. Cassiel Ato Forson has delivered a firm message to Ghanaians: the era of burdensome and distortionary taxes is coming to an end.
In his presentation of the 2025 Mid-Year Budget Statement to Parliament on Thursday, July 24, Dr. Forson declared that the COVID-19 Levy, along with other punitive levies under the Value Added Tax (VAT) system, will be completely abolished.
“The COVID-19 Levy will go. The NHIS Levy and GETFund Levy—gone. The VAT Flat Rate—scrapped. A single, unified VAT rate will take their place,” he asserted.
These measures, he explained, are part of a decisive overhaul of the tax regime under the Mahama administration, aimed at building a more equitable, efficient, and pro-growth system. The planned reforms are expected to be finalised by October 2025 and reflected in the 2026 Budget.
According to the Minister, the current VAT structure has contributed to a cascading effect that unfairly inflates prices and hampers productivity. The new tax policy, he said, will put an end to that.
“This is not just policy tinkering—it’s a structural reset,” Dr. Forson told Parliament, emphasizing that these reforms are aligned with broader economic strategies to boost revenue, enhance fiscal discipline, and stabilise the economy.
He also noted that a new VAT Bill will be ready by October and submitted to Parliament as part of next year’s Budget process.
The government’s move signals a strong commitment to tax justice, economic recovery, and the protection of ordinary Ghanaians from the weight of regressive levies.
