Ghana has scrapped its Covid-19 “Health Recovery Levy” and cut value-added tax as the government seeks to revive economic momentum. Finance Minister Cassiel Ato Forson said the measures would return GHS 5.7 billion ($520 million) to households and businesses in 2026.
He told Parliament the changes are intended to modernise the VAT system and reduce the cost of doing business across the country. Forson said the reforms follow months of analysis and consultations aimed at building a tax structure that supports Ghana’s economic transformation.
He described the new VAT framework as a tool designed to strengthen growth while easing pressure on companies and consumers. The government expects GDP to expand by at least 4.8 percent next year, reflecting growing confidence in the economic outlook.
Officials say inflation slowed to 8 percent in October, marking a tenth consecutive month of decline and offering relief to households. Forson told lawmakers that Ghana’s economy is “breathing again,” pointing to renewed activity across key sectors after a difficult period.
He highlighted first-half GDP growth of 6.3 percent in 2025, up from 5.3 percent recorded in 2024, as evidence of a strengthening recovery. The minister said the tax adjustments form part of a broader effort to build resilience and sustain the country’s development trajectory.