The Finance Minister, Dr Cassiel Ato Forson, has announced the complete abolition of the COVID-19 levy during the presentation of the 2026 Budget and Economic Policy to Parliament on November 13.
Addressing Members of Parliament, Dr Forson reaffirmed the government’s commitment to easing the economic burden on citizens. He declared: “For emphasis, we promised to abolish the COVID-19 levy with the support of this House, Mr Speaker, I’m proud to say that today the COVID-19 levy is accordingly abolished.”
According to the Minister, the cancellation of the levy is expected to put substantial relief into the economy. He explained that “by abolishing the COVID-19 levy, the government is putting 3.7 billion Ghana cedis in the pockets of individuals and businesses in 2026.”
Dr Forson also outlined ongoing tax reforms aimed at improving the cost of doing business. He noted that these reforms, including changes to the GETFund and NHIL levy structure, will reduce business operating costs by 5% and return nearly “6 billion Ghana cedis to businesses and households.”
He further highlighted concerns about the declining real value of the VAT registration threshold, which has dropped from GH¢200,000 in 2015 to the equivalent of GH¢48,000 today. This, he said, has “placed an undue burden on small and micro businesses.” The adjustment of the VAT threshold, he added, will simplify administration and ease pressure on small enterprises.
The 2026 budget, according to the Finance Minister, represents a deliberate effort to provide relief to Ghanaians and support economic growth.
