We use the theory of two dimensional discrete wavelet transforms to derive inversion formulas for the Radon transform of terahertz datasets. These inversion formulas with good localised properties are implemented for the reconstruction of terahertz imaging in the area of interest, with a significant reduction in the required measurements. As a form of optical coherent tomography, terahertz CT complements the current imaging techniques and offers a promising approach for achieving non-invasive inspection of solid materials, with potentially numerous applications in industrial manufacturing and biomedical engineering.