Abuakwa South Member of Parliament, Dr. Kingsley Agyemang, has sounded the alarm over the government’s planned taxation of general insurance services, warning that the move could endanger the survival of Ghanaian-owned insurance firms and lead to mass job losses across the sector.
Speaking to Adom News, Dr. Agyemang appealed directly to President John Mahama to halt the implementation of the new tax policy, which combines a 15% Value Added Tax (VAT) and an additional 6% levy on non-life insurance policies. The tax is scheduled to take effect from July 1, 2025.
The MP cautioned that this 21% total tax burden comes at a time when public interest and participation in insurance services remain critically low. He argued that the imposition of such levies would not only disincentivize policyholders but could also lead to the collapse of smaller, local insurers that already operate under tight margins.
“This policy will hit Ghanaian-owned businesses the hardest,” Dr. Agyemang warned. “If these companies go under, we’re not just losing businesses—we’re losing thousands of jobs and pushing skilled professionals into unemployment.”
He emphasized the strategic importance of the insurance sector in economic stability and job creation, noting that many of the firms at risk are indigenous enterprises that form the backbone of the industry.
Dr. Agyemang urged the President to suspend the planned tax rollout and instead engage industry stakeholders in a comprehensive dialogue aimed at identifying more sustainable revenue strategies that do not jeopardize local businesses or livelihoods.
“This is a time for inclusive policy-making,” he said. “Let’s work together to support homegrown businesses, not tax them out of existence.”
The call comes amid growing concerns from players in the insurance sector who argue that the new tax regime could undermine recent efforts to improve insurance penetration and public trust in the industry.