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Claim: Some Social media users on X claim that the 2025 Budget presented by the NDC government did not explicitly mention the scrapping of the COVID-19 Levy, despite earlier indications that it would be abolished.
Verdict: False! DUBAWA’s review of the 2025 Budget Statement and Economic Policy on Tuesday, 11 March, shows that the Finance Minister highlighted the government’s plan to abolish the COVID-19 Levy during his delivery.
Full Text
Barely two hours after the NDC’s 2025 Budget Statement and Economic Policy presentation to Parliament on Tuesday, 11 March, several Ghanaians like @Naaameen, @KwasiNtimY, @kofi_233 claimed the government didn’t mention scrapping the COVID-19 Levy as promised in their manifesto.
Before the 2025 Budget presentation, the NDC government hinted at abolishing several taxes, including the Electronic Transfer Levy (E-Levy), COVID-19, Emissions, and Betting Taxes.
These tax cuts are expected to ease Ghanaians’ financial burden. The Minister stated that the government remains committed to scrapping these taxes to improve disposable incomes, support business growth, and enhance tax compliance.
During the budget reading, the Finance Minister confirmed the removal of five nuisance taxes, including the 10% withholding tax on lottery winnings (Betting Tax), the 1% Electronic Transfer Levy (E-Levy), the Emission Levy on industries and vehicles, the VAT on motor vehicle insurance policies, and the 1.5% withholding tax on unprocessed gold winnings by small-scale miners.
However, some social media users have argued that the COVID-19 Levy was not explicitly mentioned as being scrapped, raising doubts about its abolition.
Verification
A review of the budget document on page 47 shows that the COVID-19 Levy was discussed under the Value Added Tax (VAT) Reforms section.
Specifically, paragraph 167 highlights that Ghana’s effective VAT rate includes the 1% COVID-19 levy, along with the GETFund Levy (2.5%) and the National Health Insurance Levy (NHIL) (2.5%). Paragraph 172(i) quoted the abolishment of the COVID-19 Levy.
Presenting the 2025 Budget, Ato Forson said, “Mr Speaker, ahead of the IMF Technical Assistance Mission, I will inaugurate a VAT Reform Task Force to hold broad consultation with key stakeholders for their inputs. Mr Speaker, the parameters for the VAT reforms which will be completed this year will include:
i. Abolishing the COVID-19 Levy
ii. Reversing the decoupling of GETFund and NHIL from the VAT
iii. Reducing the effective VAT rate for households and businesses.”
The budget, which explicitly listed the COVID-19 Levy in the VAT reforms section, strongly suggests its removal as part of the restructuring process.
Conclusion
The claim that the COVID-19 Levy was not mentioned as part of the abolished taxes in the 2025 Budget is false. The VAT reforms address the levy as part of the government’s plan to streamline taxation.
