The Importers and Exporters Association of Ghana (IEAG) has praised President John Dramani Mahama for signing the COVID-19 Health Recovery Levy Repeal Act, 2025, effectively abolishing the one percent levy that had long increased the cost of doing business for traders in Ghana.
The repeal, which takes effect in January 2026, provides relief to importers and exporters, who have historically faced higher costs in clearing cargo due to the levy. IEAG hailed the move as a fulfillment of the Mahama-led government’s campaign promises and a demonstration of responsiveness to the private sector’s concerns.
In addition to scrapping the COVID-19 Levy, the government has also reduced the Value Added Tax (VAT) rate from 21.9% to 20% and eliminated the controversial E-Levy, measures that collectively improve trade competitiveness, ease capital flow, and enhance business confidence.
“These steps provide tangible relief to businesses and signal a commitment to a more business-friendly tax environment,” IEAG stated in a release signed by its Executive Secretary, Samson Asaki Awingobit.
Call for Further Reforms
While welcoming the recent policy interventions, IEAG urged the government to strengthen trade facilitation, particularly at ports and land borders, to reduce bureaucratic bottlenecks and enhance transparency.
The association also called for the re-integration of the GETFund and NHIS Levies into the VAT composite rate, arguing that their current separation complicates compliance and increases the tax burden on businesses. Additionally, IEAG suggested a review and potential removal of the 2% Special Import Levy, which they say would complement the ongoing tax relief efforts.
“We remain committed to collaborating with government and stakeholders to create a predictable, efficient, and supportive trade environment that benefits all Ghanaians,” the statement added.
With these measures, Ghanaian importers and exporters can look forward to a more predictable business environment, reduced operational costs, and improved competitiveness within the sub-region.
