Beginning July 1, 2025, a 15% Value Added Tax (VAT) will be applied to all non-life (non-motor) insurance premiums in Ghana, the Ghana Revenue Authority (GRA) has announced. This tax is being implemented under the VAT (Amendment) Act, 2023 (Act 1107).
The measure, which also includes an additional 6% in statutory levies, is part of the government鈥檚 strategy to broaden the tax base and enhance domestic revenue. However, motor insurance premiums remain exempt, as confirmed by Finance Minister Dr. Cassiel Ato Forson in the 2025 national budget.
Enterprise Insurance, one of the country鈥檚 leading insurers, has already informed its clients about the new charges. In a notice, the company stated that the VAT and levies will apply to all non-motor insurance policies, excluding bonds, in line with government policy and regulatory directives.
鈥淓ffective 1st July 2025, all Non-Motor Insurance policies will attract VAT of 15% and levies of 6%, in accordance with the VAT (Amendment) Act, 2023,鈥 the GRA reiterated in an official statement.
The new tax policy is expected to impact the cost of various insurance products, including property, health, and travel coverage, prompting industry stakeholders to review pricing and client communications.