Member of Parliament for Old Tafo and a member of the Parliamentary Select Committee on Youth and Sports, Vincent Ekow Assafuah has slammed the government decision to impose 15 percent Value Added Tax (VAT) on non-life insurance.

In a statement that’s already stirring public debate, Vincent Ekow Assafuah asserted that this decision by government is “a tax on survival” and “a betrayal of the poor”.

Starting July 1, 2025, all motor, fire, property, travel, and business insurance policies will be subject to the new levy — reversing years of VAT exemption and sparking fears of deepened economic hardship for ordinary Ghanaians.

The government’s latest tax policy is facing strong resistance from both civil society and lawmakers following the announcement of a 15% VAT on non-life insurance premiums set to take effect on July 1, 2025.

Vincent Ekow Assafuah has condemned the move as “reckless” and “anti-poor”.

“For years, even governments knew that taxing protection was irresponsible.”

“Now, drivers, entrepreneurs, and struggling families are being punished just for trying to be responsible,” Assafuah stated.

The new tax will affect motor vehicle insurance, fire and property cover, travel policies, and business protection — forms of insurance that have historically been VAT-exempt.

Critics say the policy is tone-deaf in the face of Ghana’s rising cost of living and growing economic inequality.

Assafuah questioned the silence of the opposition National Democratic Congress (NDC), who he said, once decried “nuisance taxes” but are now noticeably quiet.

“You don’t oppose E-Levy and embrace this. You don’t preach principle and practice silence,” he declared, calling out the government's political inconsistency and urging leaders to stand up for Ghanaians facing growing financial pressure.

Industry stakeholders warn the policy may discourage insurance uptake in a country where penetration is already low, further exposing citizens to risk.

Analysts fear it could drive more drivers and small businesses away from formal insurance schemes — undermining public safety.

“This is not leadership. This is betrayal,” the statement concluded.

As the July 1 implementation date nears, pressure is mounting on the government to reconsider the policy.

Meanwhile, calls for public protest and bipartisan rejection of the VAT on insurance are gaining momentum.

AME