GRA Imposes 15% VAT on Non-Life Insurance Policies
The tax will affect property, health, and travel insurance, excluding motor policies
- GRA introduces 15% VAT on non-life insurance premiums starting July 1, 2025
- Applies to property, health, and travel insurance; motor insurance is exempt
- Aim is to increase government revenue, but premiums for consumers will rise
Starting July 1, 2025, the Ghana Revenue Authority (GRA) will implement a 15% Value Added Tax (VAT) on non-life insurance premiums.
This new levy will affect coverage areas such as property, health, and travel insurance—though motor insurance policies will remain exempt.
The initiative, introduced under the 2025 national budget, is aimed at expanding the tax base and increasing government revenue to fund essential public services. However, the tax is expected to drive up the cost of non-life insurance products, potentially leading consumers—both individuals and businesses—to scale back or forgo certain types of coverage.
While the government views the measure as a necessary step to boost fiscal strength, critics warn that it could place additional strain on households and small businesses already contending with high inflation and economic pressure.
