Gov’t to Scrap COVID-19 and NHIL Levies in Drive to Boost Business Confidence
Finance Minister, Dr Cassiel Ato Forson, has announced the planned removal of the COVID-19 Health Levy and the National Health Insurance Levy (NHIL), as the government moves to streamline its tax structure and foster a more business-friendly environment.
“These two levies have served their purpose and will be removed,” Dr Forson told Parliament during the presentation of the 2025 Mid-Year Budget Review. The levies, introduced during the peak of the COVID pandemic, were aimed at supporting public health financing but have since become targets for reform as part of broader fiscal adjustments.
The Finance Minister said the decision aligns with the administration’s efforts to stimulate demand, enhance private sector growth, and drive medium-term economic recovery. The planned removal of the levies is also seen as an important signal to businesses and consumers that the government is committed to improving the operating environment.
Tax Simplification and Growth Strategy
The decision comes amid ongoing reforms to Ghana’s value-added tax (VAT) regime, including the planned scrapping of the VAT Flat Rate Scheme in favour of a unified VAT rate structure. Together, the measures aim to simplify compliance, reduce distortions, and increase transparency within the tax system.
Dr Forson framed the tax overhaul as part of a broader strategy to restore macroeconomic stability and lay the foundation for sustained growth, as Ghana continues to meet its commitments under the IMF-supported Extended Credit Facility programme.
