President John Dramani Mahama has signed into law a bill repealing the COVID-19 Health Recovery Levy, fulfilling a major campaign promise to scrap what he described as a burdensome and confusing tax.
The announcement was made in a statement by the Presidency Communications, accompanied by photos of the President assenting to the bill at the Flagstaff House on Tuesday.
According to the statement, the repeal takes immediate effect and is aimed at easing the tax burden on households and businesses, particularly in the wake of ongoing economic challenges.
“The repeal of the COVID-19 levy is in fulfilment of my promise to the Ghanaian people,” President Mahama was quoted as saying. He earlier described the levy as “difficult to comprehend” and unnecessary under current economic conditions.
The COVID-19 levy, introduced during the pandemic as a temporary measure to fund health and economic recovery efforts, attracted criticism from labour groups, traders and policy analysts who argued that it had outlived its usefulness.
Government sources indicated that the Ministry of Finance will, in the coming days, issue further directives to the Ghana Revenue Authority (GRA) and other implementing agencies to give full effect to the repeal.
Economic analysts say the move is likely to be welcomed by the business community, though some have raised concerns about the potential impact on government revenue.
For many Ghanaians, however, the decision is seen as a major relief.
Leave a Reply