Despite the end of the country's pandemic, the government still wishes to raise additional funds through the COVID-19 Health Recovery Levy.
This may come as a disappointment to both consumers and the business community, who have advocated for the removal of a tax that, according to them, contributes to the rising cost of goods and services.
The Importers and Exporters Association of Ghana, for example, has stated that the government must do everything possible to support the business community, including eliminating the nuisance taxes that make doing business in Ghana expensive.
President Akufo-Addo stated that despite the unpopularity of the 1% tax, the government will continue to impose it in order to close the fiscal gaps caused by the pandemic and resolve other expenditure challenges.
In his Sunday address, the President said, "The COVID Health Recovery Levy that was introduced to help fill some of the expenditure gaps may not be the most popular tax, but I implore you all to bear with us."
The Covid-19 Health Recovery Levy is an independent levy applied to the aggregate value of taxable supplies made under the Standard Rate and VAT Flat Rate Schemes.
"Let me be explicit that COVID expenditures, which were largely unplanned, have been audited by the Auditor-General at my request and are undergoing parliamentary processes. The President added, "We all deserve assurances that the crisis was not used as a cover for corrupt practices."