President John Dramani Mahama addressed the nation today, Wednesday, May 7, to mark the fulfillment of his 120-day social contract with the people of Ghana. He clarified why the COVID-19 Health Recovery Levy has not yet been repealed despite his administration’s swift action on other tax reforms.
Speaking from the Jubilee House on Wednesday evening, President Mahama acknowledged the public’s anticipation for removing the COVID levy but explained its continued existence was part of a broader agreement with Ghana’s international partners under the current IMF-supported programme.
“The COVID levy has intricate linkages to the existing IMF programme. As a value-added tax, we have agreed with our multilateral partners to include it in our overall VAT rationalisation exercise scheduled for September of this year,” President Mahama said.
He stressed that any hasty repeal of the levy outside the agreed framework could risk undermining the delicate balance of Ghana’s ongoing fiscal recovery efforts.
In reaffirming his administration’s commitment to economic transformation and accountability, President Mahama highlighted several legislative wins delivered within his first 120 days in office.
“We have significantly exceeded our 120-day promises regarding overall tax reform by enacting other critical bills,” he noted, pointing to key legislations such as the Value Added Tax (Amendment) Bill, the Income Tax Amendment Bill, the Public Financial Management Bill, and the Growth and Sustainability Levy Act, among others.
He also recalled the signing of several crucial tax repeal and amendment bills on April 2, 2025, most notably the Electronic Transfer Levy (E-Levy) Repeal Bill, the Emissions Levy Repeal Bill, and the introduction of a fairer Betting Tax framework.
“We have delivered on three of these four specific tax repeals as promised,” the President stated firmly.
President Mahama reiterated that the retention of the COVID levy is temporary and tied to Ghana’s commitment to structured reforms. He assured Ghanaians that the levy will be addressed during the VAT review scheduled for September.
“This swift legislative action underscores our commitment to providing relief and creating a more favourable economic environment,” he concluded
