President John Dramani Mahama has officially abolished the COVID 19 levy, bringing an end to the pandemic era tax that affected the cost of goods and services nationwide. The repeal follows the signing of the COVID 19 Health Recovery Levy Repeal Act, which removes the one percent charge that had been applied to transactions since its introduction in 2021.
The levy was originally created to support public health measures and national recovery efforts during the height of the pandemic. Over time, many citizens and business owners questioned its continued relevance, especially as national conditions improved. By removing the levy, government aims to ease the financial pressure on households and reduce the cost burden on businesses that have struggled with rising operational expenses.
Authorities estimate that eliminating the levy will provide significant yearly relief to individuals and companies. This move is also part of a broader effort to restructure the tax system, simplify consumption taxes and reduce the layered charges that previously increased prices at every stage of production and distribution.
Businesses in retail, wholesale and import sectors are expected to benefit directly from the change, while consumers may see reduced prices on goods and services as the repeal takes effect. The abolition of the COVID 19 levy stands as one of the first major tax changes under the current administration and signals a commitment to making the tax environment fairer, clearer and more supportive of economic growth.