Minister for Education, Haruna Iddrisu, has explained that the government did not announce a sudden abolishment of the COVID-19 Levy in the 2025 budget due to planned consultations with the International Monetary Fund (IMF) on a broader review of the country’s tax system.
Speaking on Joy FM’s Super Morning Show, Mr Iddrisu revealed that the government is expecting an IMF team to arrive in Ghana in early April. A key part of their discussions will focus on a comprehensive review of the Value Added Tax (VAT), which will include the COVID Levy.
“The COVID Levy will be scrapped as part of a wider VAT review. It’s not that government has ignored it. Once the IMF consultation is complete, a bill will be introduced in Parliament at the appropriate time to deal with it,” he said.
He added that other tax components such as the GETFund and the National Health Insurance Levy (NHIL) will also be affected by the review. “Even GetFund, NHIL are all going to be affected by the major review of VAT,”he said.
The COVID-19 Health Recovery Levy, popularly known as the COVID Levy, was introduced in 2021 under the Akufo-Addo-Bawumia administration. It imposed a 1% charge on VAT-applicable goods and services, aimed at raising funds to support pandemic-related expenses and health infrastructure.
Over time, the levy drew public criticism, with many Ghanaians calling for its removal as the pandemic subsided. In response, the then-opposition National Democratic Congress (NDC) promised in 2023 to scrap the levy if voted into power.
Now in government, the NDC has reaffirmed its intention to remove the COVID Levy, with Haruna Iddrisu indicating that it will be scrapped as part of a broader VAT review with the International Monetary Fund (IMF).
