The Ghana Revenue Authority (GRA) has announced a 15% Value Added Tax (VAT) on non-life insurance premiums, which will take effect on July 1, 2025. This new tax will apply to insurance policies covering areas such as property, health, and travel; however, motor insurance will remain exempt from the tax.
This policy is part of the measures outlined in the 2025 national budget and aims to expand the country’s tax base and increase revenue for public services. For businesses and individuals, this means that premiums for non-life insurance products will rise. Consumers seeking coverage in sectors like property, health, or travel may now face higher costs, which could lead some to reconsider or reduce their level of coverage.
While this move may enhance government revenue, it could also place an additional financial burden on households and small to medium-sized enterprises (SMEs) that are already dealing with a high-inflation environment.
By: Emmanuel Oppong
