The Government of Ghana is introducing a Covid-19 Levy of 1% on Vat, Flat Rate Scheme (VFRS) and a 1% on National Health Insurance Levy (NHIL) as part of revenue measures to help the economy recover.
Minister of Parliamentary Affairs and Majority leader Osei Kyei Mensah Bonsu who disclosed this during the 2021 Budget Statement in Accra on Friday 12th March 2021 said the levies will be used for the procurement of vaccines and establishment of 14 medical waste treatment facilities.
The Caretaker Finance Minister said the levy “will also assist in the construction of 33 major health projects, the recruitment of more health professionals and agenda 111”
Agenda 111 would see the construction of 100 bed capacity district hospitals in one hundred and one districts with no hospitals. It is the latest ever investment in healthcare infrastructure in Ghana’s history and a massive vision by the Akufo-Addo led administration for Ghana’s Healthcare sector.
Don’t introduce new taxes – GUTA
Although the government may be justified stakeholders appear to be kicking against the move.
Ahead of the 2021 budget statement to be presented in Parliament, the Ashanti Regional branch of the Ghana Union of Traders Association, GUTA is urging government not to introduce new direct taxes that have the potential of affecting their businesses.
In order to relieve them of the harsh impact of the coronavirus pandemic, GUTA wants government to also facilitate processes to ensure traders have access to soft loans, as it is also calling on government to reduce levies at the ports.
“Even though the government is hard-pressed financially and is in need of revenue, we don’t expect new direct taxes that will affect our businesses. If government is thinking about any new taxes, it shouldn’t be direct that will have any impact on our businesses”, he told Citi FM.
Source: Daily Mail GH