Govt keeps COVID-19 levy despite calls for removal

The government still wants to raise more revenue through the COVID-19 Health Recovery Levy, despite the end of the pandemic in the country.

This may come as a disappointment to both consumers and the business community who have been pushing for the removal of the tax, which they say is contributing to the rising cost of products and services.

For instance, the Importers and Exporters Association of Ghana has said the government must do all it can to cushion the business community, especially abolishing the nuisance taxes that make the cost of doing business in Ghana expensive.

While describing the 1% tax as unpopular, President Akufo-Addo emphasized that the government will continue to charge the levy to bridge the fiscal gaps generated by the pandemic while addressing other expenditure challenges.

“The COVID Health Recovery Levy that was introduced to help fill some of the expenditure holes might not be the most popular tax, but I entreat all of you to bear with us”, the President said in his address on Sunday.

The Covid-19 Health Recovery Levy 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.

“Let me make it clear that COVID expenditures, essentially unplanned, have been subject, at my instigation, to audit by the Auditor-General, and are going through parliamentary processes. We all deserve to be reassured that the crisis was not used as a cover for corrupt practices,” the President added.