IMF Backs Removal of COVID-19 Levy From the Tax System

The government’s decision to remove the COVID-19 levy from the country’s tax system has received strong approval from the International Monetary Fund (IMF) following recent engagements with officials.

This endorsement gives the government the backing to proceed with the policy, which is expected to be announced during the mid-year budget review by Finance Minister Dr. Cassiel Ato Forson on Thursday, July 24, 2025.

According to the Ghana Revenue Authority (GRA), discussions on the proposed tax reforms have been progressing steadily, with the local business community aligning with some of the IMF’s recommendations.

Speaking to Joy Business, Commissioner of the Domestic Tax Revenue Division at the GRA, Edward Apenteng Gyamera, revealed that stakeholders had agreed on the removal of the COVID-19 levy, along with other taxes that were stifling business growth.

At a stakeholder engagement on the tax reforms in Accra, several business associations expressed optimism that the new measures would ease the tax burden while boosting domestic revenue mobilization.

“I think from the engagements with stakeholders and the IMF, issues that the Minister even indicated in the budget, for instance, the removal of the COVID levy, is something that has been agreed. I think so far with our interaction with the stakeholders, everybody is of the view that this levy should be taken off when the reform is completed.

Then the removal of the cascading effect of the levies, treating the levies as part of the VAT mechanism where businesses can claim input and deductions, has been generally accepted by all,” he added.

The COVID-19 levy was introduced by the previous government to fund activities related to the pandemic as the country worked to revive the economy.

The COVID-19 Health Recovery Levy, introduced by the Government in 2021 is a stand-alone levy applied to the gross value of taxable supplies of goods and services provided under the Standard Rate and VAT Flat Rate Schemes.

However, after the World Health Organisation (WHO) declared an end to COVID-19 as a public health emergency, calls have been made to the government to stop the one per cent tax.