The Importers and Exporters Association of Ghana (IEAG) has commended President John Dramani Mahama for assenting to the COVID-19 Health Recovery Levy Repeal Act, 2025, which abolishes the one per cent levy that for years increased the cost of doing business for importers, exporters, and the wider trading community.
The repeal, which takes effect from January 2026, brings significant relief to businesses, especially importers who have long borne the additional financial burden associated with clearing cargo. The Association noted that the government’s decision demonstrates responsiveness to private sector concerns and reinforces its commitment to restoring a more business-friendly tax environment.
IEAG also applauded the Mahama-led government and the National Democratic Congress (NDC) for fulfilling their pledge to scrap both the COVID-19 Levy and the E-Levy—two taxes that had been major constraints on business operations, capital flow, and overall trade competitiveness.
The Association further highlighted the government’s decision to revise the Value Added Tax (VAT) rate from 21.9% to 20%, describing it as a timely intervention that provides measurable relief to businesses. This adjustment, IEAG emphasized, will positively impact production costs, pricing, and cargo clearance processes. The group also acknowledged the recent stability of the Ghana cedi against major foreign currencies, which has strengthened business confidence and improved planning predictability for importers and exporters.
While welcoming these interventions, the Association urged the government to intensify reforms aimed at enhancing trade facilitation, particularly at the ports and land borders. It stressed that improved efficiency, reduced bureaucratic bottlenecks, and greater transparency in clearance processes are essential to making Ghana more competitive within the sub-region.
IEAG further appealed to the government to reintegrate the GETFund and NHIS levies into the VAT composite rate, reversing their separation in 2018. According to the Association, the current structure complicates compliance, increases the tax burden on businesses, and creates unnecessary administrative challenges. Reintegrating these levies, it said, would streamline taxation and bring greater clarity to traders.
In line with the government’s broader strategy to reduce the cost of doing business, IEAG also called for a review of the 2% Special Import Levy, expressing hope that it will soon be abolished. Removing this levy, the Association said, would complement existing tax relief measures and further support both local industry and international trade.
The Importers and Exporters Association of Ghana reaffirmed its commitment to working closely with government and relevant agencies to build a more progressive, predictable, and supportive trade environment for the benefit of all Ghanaians.
Signed:
Samson Asaki Awingobit
Executive Secretary
Importers and Exporters Association of Ghana (IEAG)
Tel: 0243575076
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