Ghana Parliament Repeals COVID-19 Health Recovery Levy Restoring Relief for Citizens
In a landmark decision Parliament has repealed the COVID 19 Health Recovery Levy which was introduced in 2021 to support public health financing during the pandemic. The removal was passed after a third reading indicating unified support across the house.
The Health Recovery Levy imposed a uniform 1 percent charge on goods and services and on imports excluding exempt items. Its abolition is expected to directly relieve financial pressure on consumers and businesses at a time when many households continue to recover from pandemic-related economic stress.
Government officials say the repeal aligns with broader fiscal reforms included in the 2026 Budget Statement. These reforms aim to support growth ease cost of living and revamp the Value Added Tax system to be more business and consumer friendly. Estimates suggest the removal of the levy will save over GH¢3.7 billion in 2026 alone.
Business associations and consumer rights groups welcomed the decision describing it as a timely relief that could stimulate demand, lower prices and support trade. Many believe the measure will help revive small and medium sized enterprises that have been struggling with rising operational costs and shrinking margins.
Economists note that repealing the levy may help reduce inflationary pressures by lowering indirect taxation on consumption. Combined with existing monetary and fiscal policies this could improve purchasing power for households while supporting macroeconomic stability.
However some experts caution that the government must ensure alternate revenue sources before the repeal to avoid shortfalls in health funding. They argue that sustainable health financing must come from improved efficiency in public spending and disciplined budget management rather than temporary levies.
Parliament’s move marks the end of a contentious tax measure that had drawn criticism from many sectors for placing additional financial burden on ordinary citizens. The repeal is expected to ease the cost of living and support economic recovery as Ghana navigates post-pandemic challenges with renewed fiscal commitment.
The decision also sends a strong signal about the current government’s approach to tax reform: one that seeks to balance public revenue needs with economic growth and social welfare. For now many Ghanaians are breathing a sigh of relief as they prepare for a more affordable and stable economic environment in the year ahead.
