The Government of Ghana has introduced major tax reforms in the 2026 Budget, led by the complete removal of the COVID-19 Health Recovery Levy. The announcement was made by Finance Minister Dr. Cassiel Ato Forson during his presentation in Parliament on Thursday.
Dr. Forson explained that the COVID-19 levy, which was introduced during the height of the pandemic, had created extra costs for ordinary Ghanaians and businesses. Its removal is expected to bring huge financial relief.
According to the Finance Minister, ending the levy will put GH₵3.7 billion back into the pockets of individuals and businesses in 2026 alone. He said the government is committed to reducing the burden on citizens while supporting economic recovery.
The removal of the levy is part of a broader restructuring of the Value Added Tax (VAT) system, which is expected to provide a total of GH₵5.7 billion in relief to households and the private sector.
Key VAT Reforms Announced:
Reinstatement of input tax deductions on GETFund and NHIL levies – allowing businesses to recover more costs and operate more efficiently.
Reduction of the effective VAT rate from 21.9% to 20% to ease pressure on consumers.
Increase in VAT registration threshold from GH₵200,000 to GH₵750,000 – freeing smaller businesses from mandatory VAT registration.
Removal of VAT on mineral reconnaissance and prospecting, which is expected to support investment in the mining sector.
Extension of zero-rating for locally manufactured textiles to 2028, aimed at promoting local textile production and protecting jobs.
Dr. Forson said these reforms are designed to boost business growth, support local industries, and reduce the cost of living. He stressed that the government is focused on creating a more friendly tax environment to help revive the economy.
The 2026 Budget has therefore been described as one that prioritizes reliefs for the private sector while ensuring long-term economic stability.
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