Dr Zaato is a scholar at the University of Ghana
Political science lecturer Dr Joshua Zaato has expressed his disappointment over the government’s decision to remove the controversial COVID Levy.
On November 26, 2025, Parliament passed the Value Added Tax (VAT) Bill, which formally repealed the levy introduced during the pandemic.
The bill, once assented to, will remove the 1 percent COVID-19 surcharge that had been applied to goods, services and imports.
However, speaking on TV3 on November 29, 2025, Dr Zaato argued that proceeds from the levy could have been directed toward major government efforts.
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He cited policies such as the government’s “Big Push” infrastructure plan and support for struggling farmers across the country, and sectors the levy could have been driven to instead of a full repeal.
“I wouldn’t have removed it; this money would have done something for the big Push. Again, you have a serious problem of farmers experiencing glut across the country, so I could have invested this money in the farmers,” he said
What the Repeal Means
Under the new tax regime, the COVID-19 Levy is replaced with a streamlined VAT structure. The changes are projected to return roughly GH₵3.7 billion to households and businesses in 2026, relieve cost burdens, and incentivise private-sector growth.
Advocates for the reform argue that with inflation still a concern and many households under strain, the timing could not have been better.
Critics, however, maintain that the government now needs to find alternative revenue streams to finance major development projects and support the agricultural sector, lest the fiscal gap widen.
ID/AE
