The Importers and Exporters Association of Ghana (IEAG) warmly commends His Excellency President John Dramani Mahama for assenting to the COVID-19 Health Recovery Levy Repeal Act, 2025, effectively abolishing the one per cent levy that has, for years, increased the cost of doing business for importers, exporters, and the broader trading community.
The repeal, which takes effect from January 2026, marks a significant relief for businesses, particularly importers who bore the additional financial burden clearing their cargo. This action reflects the government’s responsiveness to the concerns of the private sector and demonstrates its commitment to restoring a more business-friendly tax environment.
The IEAG further applauds the Mahama-led government and the National Democratic Congress (NDC) for fulfilling its promise to scrap both the COVID-19 Levy and the E-Levy, two policy measures that had long served as major constraints on business operations, capital flow, and trade competitiveness.
We also acknowledge the government’s decision to revise the Value Added Tax rate from 21.9% to 20%, a step which provides measurable relief to businesses and has a positive impact on production, pricing, and cargo clearance costs. Additionally, we recognize the noticeable stability of the Ghana cedi against major international currencies over the past months, an encouraging signal that boosts business confidence and supports predictable planning for importers and exporters.
Call for Further Reforms
While we commend these major interventions, the Association urges government to intensify efforts at improving trade facilitation, particularly at the ports and land borders. Efficient clearance systems, reduced bureaucratic bottlenecks, and enhanced transparency will significantly improve Ghana’s competitiveness within the sub-region.
We further appeal to the government to reintegrate the GETFund and NHIS Levies into the VAT composite rate, reversing their decoupling in 2018. The current structure continues to complicate compliance and inflate the tax burden on businesses. A reintegration will help streamline taxation, reduce administrative challenges, and provide greater clarity to traders.
In keeping with the government’s commitment to ease the cost of doing business, the IEAG also calls for a review of the 2% Special Import Levy, with the hope that it will also be abolished in due course. Its removal will consolidate the broader tax relief measures already undertaken and further support both local industry and international trade.
The Importers and Exporters Association of Ghana remains committed to working closely with government and all relevant agencies to ensure a more progressive, predictable, and supportive trade environment for the benefit of all Ghanaians.
0 Comments