President John Mahama has explained why the controversial COVID-19 Health Recovery Levy remains, despite his sweeping tax reform agenda.
He pointed directly to conditions under Ghana’s ongoing International Monetary Fund (IMF) programme.
Delivering a national address on Wednesday, May 7, to mark 120 days since returning to office, President Mahama acknowledged public frustration over the continued existence of the levy but assured that steps are underway to address it.
“I promised to scrap the E-levy, COVID levy, the 10% levy on bet winnings, and the Emissions Levy within my first 90 days,” he said.
“We have delivered on three of these four specific tax repeals as promised.”
He explained that while the COVID levy remains in place, it is due to what he called “intricate linkages” with Ghana’s existing IMF programme.
“As a value-added tax, we have agreed with our multilateral partners to include it in our overall VAT rationalisation exercise scheduled for September of this year,” the President revealed.
President Mahama sought to assure Ghanaians that his government is not backing down on its commitment to ease the tax burden.
“We have significantly exceeded our 120-day promises regarding overall tax reform,” he declared.
The President cited several critical legislative wins to support his case.
“On April 2, 2025, I signed several bills into law, including the Electronic Transfer Levy (E-LEVY) Repeal Bill 2025, the Emissions Levy Repeal Bill, and the Betting Tax.”
He continued: “This swift legislative action underscores our commitment to providing relief and creating a more favourable economic environment.”
The President also announced the passage of broader economic reform legislation, such as the Value Added Tax (Amendment) Bill, the Income Tax Amendment Bill, the removal of VAT on motor vehicles, the Public Financial Management Bill, and the Growth and Sustainability Levy Act, among others.
“Change is not just about promises—it is about action,” President Mahama said, adding that his government is determined to restore fairness to the tax system and rebuild public trust.
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