The Ghana Revenue Authority (GRA) has announced the introduction of a 15% Value Added Tax (VAT) on all non-life insurance premiums, effective July 1, 2025. The move is part of broader fiscal measures outlined in the 2025 national budget aimed at expanding the country’s tax base and enhancing revenue generation.
The new VAT will affect policies covering property, health, travel, fire, and other non-life insurance products. However, motor insurance premiums will remain exempt under the revised tax regime.
This policy shift means that businesses and individuals purchasing non-life insurance will see a direct increase in premiums. For many consumers—especially households and small to medium-sized enterprises (SMEs)—the additional cost may lead to reduced insurance coverage or hesitation in renewing existing policies.
While the government argues that the VAT imposition is necessary to raise funds for critical public services and infrastructure, analysts warn that the timing could place additional financial stress on citizens already coping with inflationary pressures and rising living costs.
Industry stakeholders are calling for broader consultations and possible phased implementation to mitigate the economic impact on both insurers and policyholders.
