The government’s 2025 fiscal policy has been criticized by the minority in parliament, which claims the Mahama-led government misled Ghanaians by declaring it will eliminate the betting tax and the Valued Added Tax (VAT) on auto insurance.
Karaga MP and former Finance Minister Dr. Amin Adam told reporters in Parliament shortly after the 2025 Budget Statement and Economic Policy was unveiled that the betting tax and auto insurance VAT had never been imposed during the previous New Patriotic Party (NPP) administration.
The government’s claim to have eliminated these levies, he contended, was “deceiving the people of Ghana.”
“Ladies and gentlemen, we never collected the betting tax that they claimed to have eliminated. “To come and tell Ghanaians that you have abolished something that was never implemented is to deceive the people of Ghana,” he said, adding that the betting tax was never imposed.
The administration was accused by the Minority of trying to fool Ghanaians by imposing a VAT on non-life insurance while stating that motor insurance was exempt.
“The Minister declared that the VAT on auto insurance would be eliminated. Ladies and gentlemen, the VAT on auto insurance was previously not being collected. Motor insurance was excluded from VAT. Instead, the Minister was making an effort to be astute. With the exception of auto insurance, they have reinstated VAT on non-life insurance,” Dr. Adam claimed.
Given that Ghana’s insurance penetration rate is only 1.1%, he called the action startling and questioned why the government would impose a value-added tax (VAT) on non-life insurance products at a time when the sector is having difficulty growing coverage.
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