Finance Minister Dr. Cassiel Ato Forson has assured Ghanaians that the COVID-19 Health Recovery Levy will be scrapped in fulfilment of the campaign promise by the National Democratic Congress (NDC).
Delivering the Mid-Year Review Budget in Parliament on Thursday, July 24, 2015, he explained that the levy will be abolished under a new Value Added Tax (VAT) amendment bill.
“I would like to reassure Ghanaians that the COVID-19 Levy will be abolished, the Effective VAT Flat Rate will be reduced, the punitive and cascading effects of the NHIS Levy will be removed, and GETFUND will be removed. VAT Flat Rate will be removed, and a unified VAT Rate will be implemented,” Dr. Forson told Parliament.
He said the government remains committed to simplifying and restructuring VAT to make it fairer and more efficient.
“These reforms are aimed at addressing the distortions and cascading effect inherent in the current VAT structure,” he said.
He remarked that the administration led by President John Dramani Mahama had already concluded consultations with the International Monetary Fund (IMF) and is currently working with the Ghana Revenue Authority (GRA) to engage businesses and traders across the country.
“Currently, the Ghana Revenue Authority, together with the Ministry of Finance, is undertaking a nationwide consultation process to sensitise key players in the trade and business sector on the VAT reform and solicit feedback from them.”
He further announced that the consultation phase would be completed by September 2025.
After the consultation, a draft VAT bill was prepared by October for submission as part of the 2026 budget statement.
Meanwhile, he has added that some other proposed reforms include the removal of the VAT flat rate scheme, the elimination of the cascading impact of the GETFund and NHIS levies, and the introduction of a single unified VAT rate.
He concluded by promising small and micro businesses will thrive with a higher registration threshold and streamlined compliance through education and digital systems.
By: Rainbowradioonline.com/Ghana
