The government has announced it would be introducing a Covid-19 Health Levy of 1% on VAT, Flat Rate Scheme (VFRS) and a 1% on National Health Insurance Levy (NHIL) as part of revenue measures to help the economy recover.
This was disclosed by the Caretaker Finance Minister, Osei Kyei Mensa Bonsu when he presented the 2021 budget before parliament on Friday, March 12, 2021.
He examined that the levies will be used for the procurement of vaccines and establishment of 14 medical waste treatment facilities.
The levy “will also assist in the construction of 33 major health projects, the recruitment of more health professionals and agenda 111.”
“To provide the requisite resources to address these challenges and fund these activities, 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,” he said.