Policy Analyst Dr Peter Terkper has warned that the government’s planned enforcement of a 15% Value Added Tax (VAT) on non-life insurance premiums could deal a severe blow to Ghana’s already fragile insurance sector.
Speaking in reaction to the Ghana Revenue Authority’s announcement, Dr Terkper said the sector is not positioned to absorb the financial burden such a policy will bring.
“We are already struggling,” he spoke to ABC News GH on Thursday.
According to Dr Terkper, the government appears disconnected from the realities facing the industry and its customers.
“Already, people don’t understand insurance and thus do not do it. And if you want more people to join in, you impose more tax?” he questioned.
He expressed disappointment at what he described as a narrow fiscal approach, adding, “This is a sector that is already struggling. I wish they can hold on to that decision.”
Dr Terkper called on the government to show transparency and accountability before introducing new levies.
“Unfortunately, they don’t have any alternative now. All they know is to impose levy,” he lamented.
He urged the government to present a comprehensive report on the state of the economy and the rationale behind the tax policy.
“Government should come and give us a comprehensive report on where we were and where we have gotten to,” he stressed.
