Chief Revenue Officer and Commissioner at the Domestic Tax Revenue Department Secretariat, David Lartey-Quarcoopome
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 rather a reintroduced levy stemming from a previous law.
Speaking on JoyNews’ AM Show, Chief Revenue Officer and Commissioner at the Domestic Tax Revenue Department Secretariat, David Lartey-Quarcoopome, explained that the tax originally existed under Act 870, was scrapped by the New Patriotic Party government in 2017, and later 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 would come in.” he emphasized.
He noted that the GRA has now been tasked to fully enforce the tax following the legislative update. The delay in rollout, he added, was due to the need for adequate systems and frameworks to ensure smooth implementation and minimize disruptions for insurance providers and policyholders alike.
“The GRA then had to work on the modalities and the various arrangements. We don’t work alone. We work with our stakeholders, so we have to engage them to get our practice notes and other preparations, even for them to even prepare their own system to be able to capture the tax adequately,” he said.
Importantly, motor vehicle insurance premiums are exempt from this VAT application. Mr. Lartey-Quarcoopome confirmed that the government has excluded motor insurance from the affected non-life segments.
This move comes amid efforts by the government to broaden the tax net and improve domestic revenue collection, especially within the formal insurance industry.
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
