The government, despite the end of the pandemic in the country, continues to seek additional revenue through the COVID-19 Health Recovery Levy.
This may come as a surprise to both consumers and the business community, who have been lobbying for the repeal of the tax, which they claim is contributing to rising product and service prices.
The Importers and Exporters Association of Ghana has stated that the government must do everything possible to help the business community, including eliminating the vexing taxes that make doing business in Ghana prohibitively expensive.
While describing the 1% tax as unpopular, President Akufo-Addo stated that the government will continue to levy it in order to bridge the fiscal gaps caused by the pandemic while addressing other expenditure challenges.
“The COVID Health Recovery Levy that was introduced to help fill some of the expenditure holes may not be the most popular tax, but I implore all of you to bear with us,” the President said in his address on Sunday.
The Covid-19 Health Recovery Levy is a separate levy levied on the gross value of taxable supplies of goods and services provided under the Standard Rate and VAT Flat Rate Schemes.
“Let me make it clear that COVID expenditures, essentially unplanned, have been subject, at my instigation, to audit by the Auditor-General, and are going through parliamentary processes. We all deserve to be reassured that the crisis was not used as a cover for corrupt practices”, the President added.
