Audio By Carbonatix
Economist and University of Ghana Professor, Patrick Asuming, says it is more prudent for government to get the Value Added Tax (VAT) reforms right than to rush the removal of the COVID-19 Health Recovery Levy.
Speaking on JoyFM’s TopStory, he acknowledged the disappointment over the continued existence of the levy after the Finance Minister, Dr Cassiel Ato Forson, did not announce the removal during the presentation of the mid-year budget review.
However, he urged patience, as the Minister indicated that the government has moved to finalise consultations on broader VAT system reforms.
“I think a few people will be disappointed that it’s not gone at the time,” he said. “But the Finance Minister from the onset said it will be removed as part of a broader reform of the VAT system.”
He noted that while consultations with the International Monetary Fund (IMF) have been completed, the Ministry of Finance and the Ghana Revenue Authority (GRA) are still engaging stakeholders, including businesses and traders.
“The final document will be shared when the 2026 budget is read,” he added. “It’s better to do a good job with the VAT reforms than to rush.”
Finance Minister, during his presentation of the Mid-Year Budget Review in Parliament on Thursday, July 24, announced that the COVID-19 levy will be scrapped under a new VAT amendment bill.
Introduced during the pandemic to support healthcare spending, the levy’s removal fulfils a key National Democratic Congress (NDC) promise.
Dr. Forson said consultations with the IMF are done, and national stakeholder engagements will conclude by September. A draft VAT bill will be ready by October for inclusion in the 2026 budget.
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