By The Minority in Parliament has criticised the government’s 2025 Fiscal Policy. They accuse the Mahama-led administration of misleading Ghanaians. The government announced the abolition of the Valued Added Tax (VAT) on motor insurance and the betting tax.
Karaga MP and former Finance Minister, Dr Amin Adam, addressed the media in Parliament. This occurred shortly after the 2025 Budget Statement and Economic Policy was presented. He claimed that the betting tax and VAT on motor insurance were never implemented. These taxes were not introduced under the previous New Patriotic Party (NPP) government.
He argued that the government’s claim of abolishing these taxes was “deceiving the people of Ghana.”
“Ladies and gentlemen, betting tax that they said they had abolished, we never collected betting tax. We never implemented the betting tax. To tell Ghanaians you abolished something never implemented is deceptive. It’s misleading to the people of Ghana,” he stated.
On the issue of VAT on motor insurance, the Minority accused the government of attempting to outsmart Ghanaians. They claim the government introduced VAT on non-life insurance while asserting an exemption for motor insurance.
“The Minister announced that they are abolishing VAT on motor insurance. Ladies and gentlemen, we were already not collecting VAT on motor insurance. VAT on motor insurance was exempted. Rather, the Minister was trying to be smart. They have reintroduced VAT on non-life insurance with the exemption of vehicle motor insurance,” Dr Adam asserted.
He described the move as shocking, given that Ghana’s insurance penetration rate stands at just 1.1 per cent. He questioned why the government would introduce VAT on non-life insurance policies. This comes at a time when the industry is struggling to expand coverage.
