A recent revelation has cast doubts on the credibility of the Minister for Finance, Ato Forson’s claim to have abolished taxes on motor vehicle insurance.
An examination of receipts from car purchases made last year reveals no evidence of Value-Added Tax (VAT) on motor vehicle insurance.
The receipts, which include a payment made on January 10, 2025, for third-party insurance on a motor vehicle, show a detailed breakdown of the premium costs.
However, there is no mention of VAT in the price buildup.
This raises questions about what tax on motor vehicle insurance the Finance Minister actually abolished.
The receipt shows the following costs:
– Premium: GHC 437.00
– Sticker Fee: GHC 45.00
– Total Due: GHC 482.00
The breakdown of the premium costs includes:
– Own Damage Basic Premium: GHC 0.00
– Personal Accident: GHC 20.00
– New Ecowas Perils: GHC 17.00
– New Additional Peril: GHC 8.00
– Third Party Basic Premium: GHC 392.00
– Total Annual Premium: GHC 437.00
The absence of VAT on motor vehicle insurance in the receipt suggests that the Finance Minister’s claim to have abolished the tax may be misleading.
It remains unclear what tax the Minister actually abolished, and the government has yet to provide clarification on the matter.
The revelation has sparked concerns about the government’s transparency and accountability.
Critics argue that the Finance Minister’s claim was a political stunt aimed at gaining public support.
Others have called for further investigation into the matter, demanding that the government provide clear evidence of the tax abolition.
-BY Issah Olegor
