Ken Ofori-Atta, the Finance Minister-designate, says the 1% COVID-19 levy included in the 2021 budget statement would help pay for COVID-19 vaccines imported into the region, among other items.
The government has announced the implementation of a COVID-19 levy to cover the increased state spending caused by the coronavirus pandemic.
The latest draft tax would raise both the current VAT Flat Rate Scheme (VFRS) and the National Health Insurance Levy by one percentage point (NHIL).
Osei Kyei-Mensah-Bonsu, the caretaker Finance Minister, declared the taxes in Parliament last Friday when he delivered the government’s budget for the fiscal year ending December 31, 2021.
Money raised from the levy would be used to build health facilities, hire more health workers, implement a vaccine campaign, and resolve other problems in order to handle the COVID-19 outbreak in the region, he added.
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“To provide the requisite resources to address these challenges and fund these activities, the government is proposing the introduction of a COVID-19 Health Levy of a one percentage point increase in the National Health Insurance Levy and a one percentage point increase in the VAT Flat Rate to support expenditures related to COVID-19,” Mr. Kyei-Mensah-Bonsu disclosed.
However, this has sparked some media discussion. Although some are in favor, some are against, claiming that now is not the time because COVID-19 is already wreaking havoc on industries and livelihoods.
Mr. Ofori Atta, on the other hand, has urged Ghanaians to support the initiative.
According to him, the government has programs in the works to alleviate the outbreak’s impact.
Mr. Ofori-Atta reported this in a PricewaterhouseCoopers virtual post-budget platform.
“It is important that we have the 1 percent COVID-19 levy on VAT which essentially is looking at making sure that we are able to pay for the vaccines and get our people working, and so we don’t have lockdowns and also undertake other projects such as Agenda 111 so that our infrastructure for healthcare will be a lot more robust.”
Source: ATLFMNEWSROOM
