Finance Minister Dr. Cassiel Ato Forson has announced sweeping tax reforms in the 2026 Budget, with the abolition of the COVID-19 levy taking centre stage as government’s boldest move yet to revive the economy and ease pressure on households and businesses.
Presenting the budget to Parliament on Thursday, November 13, under the theme “Resetting for Growth, Jobs, and Economic Transformation,” Dr. Forson said the decision marks a decisive shift from austerity to recovery.
“The abolition of the COVID-19 levy and the restructuring of the VAT system are part of a comprehensive strategy to return purchasing power to Ghanaians and stimulate production,” he explained.
Under the new policy, government will:
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Abolish the COVID-19 levy, which was introduced in 2021 to support pandemic-related expenditures.
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Remove the decoupling of the GETFund and NHIS levies from the VAT base.
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Eliminate VAT on the reconnaissance and prospecting of minerals.
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Reduce the effective VAT rate from 21.9% to 20%.
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Raise the VAT registration threshold from GH₵200,000 to GH₵750,000.
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Extend zero-rating on locally manufactured textiles until 2028.
According to the Minister, the abolition of the COVID-19 levy alone will put GH₵3.7 billion back into the economy, while the entire VAT reform package is projected to inject close to GH₵6 billion in relief to consumers and businesses.
“This budget represents a reset — one that focuses on empowering Ghanaians rather than burdening them,” Dr. Forson stated.
Economic analysts say the reforms could boost private sector confidence, encourage business expansion, and reduce cost pressures on goods and services.
Dr. Forson added that the government’s broader goal is to “restore hope, create jobs, and transform the economy through inclusive growth.”
“We are taking deliberate steps to make taxes fairer, simpler, and growth-oriented. This is about rebuilding trust between government and the people,” he concluded.
