The Finance Minister, Dr. Cassiel Ato Forson, has justified the decision to delay the removal of the COVID-19 levy, insisting it has to complete ongoing Value Added Tax (VAT) reforms before doing so.
According to him, there is also a need to undertake the necessary business engagement.
The government earlier this year announced that it is hoping to complete work on VAT reforms by September 2025 to facilitate the removal of the Covid-19 levy.
However, addressing Parliament during the Mid-Year Review of the 2025 Budget, the finance minister said the full removal will be captured in the 2026 Budget.
The government has also announced plans to reform the whole VAT structure. This will also see the effective VAT rate reduced.
The cascading effect of the GETFUND and NHIS levies will also be removed.
Meanwhile, the unified VAT will be implemented, while the VAT threshold will be increased to exempt small and micro businesses.
