COVID-19 Levy Set to be Abolished by Year-End – Deputy Finance Minister
Deputy Finance Minister, Thomas Nyarko Ampem, has assured that the COVID-19 levy is expected to be abolished by the end of the year as part of the government’s broader tax rationalisation agenda.
Speaking in an interview with Joy News, Mr. Nyarko Ampem noted that the levy would be considered alongside the Value Added Tax (VAT) rationalisation process, a commitment made by President John Mahama’s administration.
“The COVID-19 levy will be considered alongside the VAT rationalisation process that we have been committed to do. So, when that process is done, I believe the COVID levy would also be removed. I’m looking at towards the end of the year if we are able to finish the rationalisation processes, we would be able to do that,” he stated.
The Deputy Finance Minister reiterated the government’s commitment to abolishing what it describes as “nuisance taxes,” in line with the National Democratic Congress’s (NDC) manifesto. He highlighted that the Electronic Transaction Levy (E-levy) and the betting tax have already been scrapped as part of this initiative.
When asked whether more taxes would be repealed, Mr. Nyarko Ampem said, “At this time, it would be difficult to make any promises, but as the economy picks up, we wouldn’t mind repealing more taxes.”
He further emphasized that President Mahama remains committed to fulfilling all tax-related promises outlined in the NDC’s manifesto, adding, “We are working towards the rationalisation of all these promises he made.”
The 2025 Budget outlines the government’s plan to reform the VAT system, which includes removing the COVID-19 Health Recovery Levy, treating health and education levies as part of VAT, and reducing the number of eligible VAT-registerable traders.
These measures are aimed at simplifying the tax structure and providing relief to businesses and consumers.
