The government has introduced a new tax to fund Covid-19 related financial burden for the households and the government.
The new tax dubbed: “Covid-19 Heath Levy” was captured in the 2021 Budget Statement and Economic Policy.
The new tax will increase National Health Insurance Levy and VAT Flat Rate by one percentage point to support expenditures related to Covid-19.
The Majority Leader in Parliament and Minister for Parliamentary Affairs announced this when he presented this year’s budget on behalf of the Minister-designate for Finance, Mr. Ken Ofori-Atta, who is receiving medical treatment outside the country.
He said the tax would enable the government to provide the requisite resources to address challenges related to Covid-19 and also fund other health-related expenditures.
He added that the government recognised the impact of Covid-19 on some Ghanaians, which has made life difficult for them and would devise strategies to help them and rebuild their lives and the country’s economy.
Also, he said the new tax was expected to limit debt burden and maintain fiscal discipline.
“We have to do this ourselves as no one will do it for us. Rebuilding our public finances requires us to implement some important fiscal measures to mobilize additional domestic revenue,” he said.
Eva Frempon-Ntiamoah, ISD
