The local economy experienced a downward trend in 2020 after the country was hit by the Coronavirus pandemic.

Since its wobbling state following the pandemic and the Russia-Ukraine War, the government implemented measures to put the economy back on a sound footing.

One of the measures deployed by the government to stabilise the economy was to seek financial assistance from the International Monetary Fund (IMF).

Additionally, the COVID-19 Levy was introduced as a means of burden-sharing to help the economy recover.

The government stated that the reason for the COVID Levy was to settle the compounding debts incurred during the outbreak of the global pandemic.

However, years after the pandemic, Ghanaians continue to pay this levy, and many have described it as a nuisance tax because it has outlived its purpose.

Speaking at the launch of the NDC manifesto on Saturday, August 24, 2024, the Minority Leader in Parliament, Dr. Cassiel Ato Forson, said that the next NDC government will abolish the COVID-19 Levy.

He indicated that the NDC will reverse the decoupling of the GETFund, NHIL, and the COVID Levy from the Value Added Tax system.

Ato Forson said, "The next NDC government will abolish the COVID Levy and reverse the decoupling of GETFund, NHIL, and the COVID levy from the Value Added Tax system."

The COVID-19 Health Recovery Levy was introduced in Ghana as a special levy to support the country’s expenditures. Enacted by Parliament as Act 1068 on March 31, 2021, the levy imposes a 1% charge on the supply of goods and services made in Ghana, as well as on imports, excluding exempt goods or services.

The VAT is computed on the value of the taxable supply inclusive of NHIL, GETFund Levy, and the COVID-19 Levy.

SA/AE