The Ghana Revenue Authority (GRA) has announced the implementation of a 15% Value Added Tax (VAT) on non-life insurance premiums, set to take effect on July 1, 2025.
The tax will affect insurance policies in areas such as property, health, and travel. However, motor insurance has been excluded from the new directive.
“Important Update: Starting July 1, 2025, a 15% VAT will be applied to non-life insurance premiums in Ghana. Know what this means for you!,” they stated.
Introduced as part of the government’s 2025 national budget measures, the VAT policy aims to expand the country’s tax base and increase revenue to support public services.
The change means individuals and businesses will see an increase in premiums for non-life insurance products.
This may prompt some policyholders to reduce coverage or opt out of certain services, especially in an already inflationary climate.
Although the measure is expected to boost government revenue, it is likely to add financial pressure on households and small businesses grappling with rising costs.
