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A lawyer and Technical Advisor to the Commissioner-General of the Ghana Revenue Authority (GRA), Elsie Appau-Klu, has outlined a number of taxes abolished by government in recent years, describing the reforms as a major step toward easing the burden on taxpayers and strengthening the country’s economic system.
According to her, Ghana’s Parliament has since 2024 repealed several tax laws as part of broader efforts to simplify the tax regime, promote compliance and stimulate economic growth.
Among the abolished taxes is the COVID-19 Health Recovery Levy, which was introduced during the height of the COVID-19 pandemic. Appau-Klu explained that the levy was removed because the pandemic is no longer considered a public health emergency. She noted that the cancellation of the levy is expected to return about GH¢3.7 billion to individuals and businesses in 2026 alone.
She also highlighted the repeal of the Electronic Transfer Levy, popularly known as the E-Levy, which had been widely debated in the country. According to her, scrapping the levy is expected to revive digital financial services and encourage the use of mobile money and other electronic payment platforms by individuals and small businesses.
Other taxes that have been abolished include the VAT Flat Rate scheme, the Emissions Levy, VAT on life and motor insurance services, the betting tax and the withholding tax on lottery winnings.
Appau-Klu explained that the removal of these taxes is aimed at simplifying tax administration, reducing the compliance burden on businesses and individuals, and promoting growth in sectors such as insurance, gaming and digital finance.
She added that the reforms are complemented by changes introduced under the Value Added Tax Act, 2025 (Act 1151), which establishes a unified VAT rate of 15 percent on taxable supplies.
The law also increases the VAT registration threshold from GH¢200,000 to GH¢750,000, a move she said will benefit micro and small enterprises by reducing the pressure to register for VAT.
Appau-Klu further noted that the reforms now allow the GETFund Levy and the National Health Insurance Levy to be deducted as input VAT, a change expected to reduce the cost of doing business.
Despite the tax reforms, she stressed that tax compliance remains a major challenge in Ghana. She pointed out that only about 29 percent of eligible taxpayers currently pay VAT, while roughly 19 percent properly pay income tax.
She therefore called for increased public participation in taxation, emphasizing that taxes remain the government’s main source of revenue for funding essential services such as healthcare, education, infrastructure and security.
Appau-Klu urged business owners to ensure they do not charge taxes that have been abolished by law and encouraged citizens to check their invoices carefully when making purchases.
She also called on Ghanaians to support national development by fulfilling their tax obligations, noting that improved tax participation will help strengthen the country’s economy and support government development programmes.
Yaw Boagyan
