In a move aimed at alleviating the financial burden on Ghanaians, Finance Minister Dr. Cassiel Ato Forson has announced plans to abolish the National Health Insurance Scheme (NHIS) Levy and the COVID-19 Levy starting in 2026. This declaration came as part of a comprehensive tax reform agenda unveiled during his presentation of the 2025 Mid-Year Budget Statement to Parliament on Thursday, July 24.
Dr. Forson outlined a significant overhaul of Ghana’s Value Added Tax (VAT) system, promising a simpler, fairer, and more growth-oriented tax regime. The government intends to finalize reforms to the VAT Act by October 2025, with these changes to be incorporated into the 2026 Budget Statement.
“I want to assure Ghanaians that the COVID-19 Levy will be scrapped, the NHIS Levy will be restructured to remove its cascading effect, and the VAT Flat Rate and GETFund levy will also be removed,” Dr. Forson stated. He added, “A single, unified VAT rate will be introduced.”
The Finance Minister explained that these measures are part of a broader strategy to enhance fiscal discipline, improve domestic revenue mobilization, and make the tax system more efficient and equitable. He emphasized that the reforms are designed to support macroeconomic stability, foster business growth, and ease the rising cost of living for the average Ghanaian.
A new VAT Bill, reflecting these proposed changes, is expected to be submitted to Parliament as part of the 2026 Budget process.
