The Importers and Exporters Association of Ghana (IEAG) has commended President John Dramani Mahama for signing the COVID-19 Health Recovery Levy Repeal Act, 2025, into law, effectively abolishing the one per cent levy that has long increased the cost of doing business for importers, exporters, and the wider trading community.

The repeal, effective January 2026, is seen as a significant relief for businesses, particularly importers who previously bore the additional financial burden when clearing cargo.

In a statement issued on Thursday, December 11, IEAG described the move as a demonstration of the government’s responsiveness to private sector concerns and its commitment to creating a more business-friendly tax environment.

"The IEAG further applauds the Mahama-led government and the National Democratic Congress (NDC) for fulfilling its promise to scrap both the COVID-19 Levy and the E-Levy, two policy measures that had long served as major constraints on business operations, capital flow, and trade competitiveness," the statement read.

The Association also welcomed the government’s decision to revise the Value Added Tax (VAT) rate from 21.9% to 20%, noting that this reduction offers tangible relief for businesses, positively affecting production costs, pricing, and cargo clearance.

"Additionally, we recognise the noticeable stability of the Ghana cedi against major international currencies over the past months, an encouraging signal that boosts business confidence and supports predictable planning for importers and exporters," IEAG said.

While applauding these interventions, IEAG urged the government to further improve trade facilitation, particularly at ports and land borders. The Association called for more efficient clearance systems, reduced bureaucratic bottlenecks, and enhanced transparency to strengthen Ghana’s competitiveness within the sub-region.

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IEAG also appealed for the reintegration of the GETFund and NHIS Levies into the VAT composite rate, reversing their decoupling in 2018. The Association argued that the current structure complicates compliance and inflates the tax burden on businesses. Reintegrating these levies, they said, would simplify taxation, reduce administrative challenges, and provide greater clarity for traders.

"In keeping with the government’s commitment to ease the cost of doing business, the IEAG also calls for a review of the 2% Special Import Levy, with the hope that it will also be abolished in due course," the statement added. Its removal, the Association noted, would consolidate recent tax relief measures and further support both local industry and international trade.

The IEAG reaffirmed its commitment to working closely with government and relevant agencies to foster a progressive, predictable, and supportive trade environment for the benefit of all Ghanaians.