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Finance Minister Dr. Cassiel Ato Forson has announced the complete abolition of the COVID-19 levy and the introduction of extensive VAT reforms as part of the government’s 2026 Budget, aimed at easing the tax burden and stimulating economic growth.
Presenting the budget to Parliament on Thursday, November 13, under the theme “Resetting for Growth, Jobs, and Economic Transformation,” Dr. Forson said the reforms are designed to boost household income, support businesses, and accelerate economic recovery.
“The new VAT reforms will abolish the COVID-19 levy, remove the decoupling of the GETFund and NHIS levy from the VAT tax base, and eliminate VAT on reconnaissance and prospecting of minerals,” he explained.
He added that the effective VAT rate will drop from 21.9% to 20%, while the VAT registration threshold will rise from GH₵200,000 to GH₵750,000. Additionally, VAT zero-rating on locally manufactured textiles has been extended to 2028.
According to Dr. Forson, abolishing the COVID-19 levy alone will return GH₵3.7 billion to Ghanaians, and the broader VAT reforms are projected to benefit households and businesses by nearly GH₵6 billion.
He emphasized that these measures reflect the government’s commitment to fairness, efficiency, and inclusive recovery. “By abolishing the COVID-19 levy, the government is putting money back into the pockets of individuals and businesses,” he stated.
