Government has officially abolished the COVID-19 Health Recovery Levy after President John Dramani Mahama signed the repeal legislation into law at the Jubilee House on Wednesday, December 10, 2025.

The move eliminates the 1% charge previously applied to goods, services, and imports.
The levy, introduced on March 31, 2021 at the height of the pandemic, was intended to support the country’s economic recovery. It had been applied alongside existing taxes such as VAT, NHIL, and the GETFund levy.

The repeal, approved by Parliament last month, forms part of government’s broader strategy to remove what it describes as nuisance taxes and alleviate the financial burden on citizens.

With the new law now in force, the scrapping of the levy will take effect from January 2026. The change is expected to reduce the cost of goods and services while providing some relief to households and businesses.

The COVID-19 levy, established under Act 1068, has been in place for four years. Its removal aligns with a wider economic reform agenda aimed at stimulating economic activity and boosting consumer spending.