
The Ghana Revenue Authority (GRA) has clarified that the 15% Value Added Tax (VAT) on Non-Life Insurance premiums is not a new tax but a reintroduced levy based on existing legislation.
Speaking on JoyNews’ AM Show, David Lartey-Quarcoopome, Chief Revenue Officer and Commissioner at the Domestic Tax Revenue Department Secretariat, explained that the tax was originally included under Act 870, which was passed earlier but later scrapped by the New Patriotic Party government in 2017. It was subsequently reintroduced through amendments in 2023.
“So indeed, it’s not a new tax, and why would I say so? When Act 870 was passed, insurance or taxation of financial services was included, under which insurance falls,” he emphasized.
He added that the GRA is now mandated to fully enforce the tax following the legislative update. The delayed rollout was necessary to develop adequate systems and frameworks for smooth implementation to minimize disruptions for insurance providers and policyholders.
“The GRA had to work on the modalities and various arrangements. We don’t work alone; we collaborate with stakeholders to issue practice notes and allow them to prepare their own systems to capture the tax appropriately,” he said.
Importantly, motor vehicle insurance premiums are exempt from this VAT. Mr Lartey-Quarcoopome confirmed that the government excluded motor insurance from the affected non-life insurance segments.
This move aligns with government efforts to broaden the tax base and enhance domestic revenue collection, particularly within the formal insurance sector.