'COVID levy still with us' – Mahama blames IMF deal, promises review

President John Mahama explained why the COVID-19 Health Recovery Levy still exists. This is despite his tax reform agenda.

He pointed to conditions from Ghana’s International Monetary Fund (IMF) programme.

In a national address on May 7, he acknowledged public frustration with the levy. He assured citizens that steps are being taken to address it.

“I promised to scrap the E-levy, COVID levy, and others within 90 days,” he said. “We have delivered on three of these four tax repeals.”

Mahama noted that the COVID levy remains due to its connection with the IMF programme.

“As a value-added tax, we agreed with partners to include it in our VAT rationalisation,” he explained. This exercise is scheduled for September this year.

The President reassured Ghanaians about easing their tax burden. “We have significantly exceeded our 120-day promises regarding overall tax reform,” he stated.

He cited important legislative wins as evidence of progress. On April 2, 2025, he signed several bills into law.

These included the Electronic Transfer Levy Repeal Bill and the Emissions Levy Repeal Bill. “This swift action shows our commitment to providing relief,” he added.

Mahama also announced broader economic reforms. These include changes to VAT, income tax amendments, and removing VAT on motor vehicles.

“Change is not just about promises—it is about action,” he said. His government aims to restore fairness in the tax system and rebuild public trust.