The Minister of Information, Mr Kojo Oppong Nkrumah has said the COVID-19 Health Levy introduced by the government in the 2021 Budget Statement is not for the free water and electricity enjoyed by Ghanaians in 2020.

Earlier in an interview, he said the freebies were not free for government and therefore must be paid for.

“When we say free electricity, it doesn’t mean that the IPP producer is also going to say because the President has said free electricity, I won’t charge for it. But that GHS19 billion has to be paid for at some point. We have to pay for the liabilities incurred.”

However, he has clarified the confusion on the matter at a press briefing on Sunday afternoon [March 21, 2021]. He said the claim that government says people have to pay for the free water and electricity is false.

“You know that government has never said that you have to pay for the free water and electricity. The COVID levy is not for free water and electricity.”
Mr Kojo Oppong Nkrumah, Minister of Information

Mr Oppong Nkrumah explained that the budget outlines what government has done with the COVID programme. He went on to make the point that to provide a requisite resource to sustain the implementation of these measures, government is proposing the introduction of a COVID-19 Health Levy of 1% increase in the National Health Insurance Levy and 1% increase in the VAT Flat Rate for that purpose.

Ministry of Finance’s Statement

In a statement issued by the Ministry of Finance on Friday, March 19, 2021, the government provided details of how it intends to use the COVID-19 Levy.

The explanation followed recent reports suggesting that the government will use the COVID-19 levy to pay for the 2020 free water and electricity enjoyed by Ghanaians.

The government refuted claims that the newly-approved levy will cater for the free water and electricity expenditure of 2020.

The statement said the “Ministry also notes media reports suggesting that Government has announced that the Covid-19 levy is to be utilized in paying for free water and electricity of 2020. The free water and electricity of 2020 “ought not to be misconstrued to mean the new taxes of 2021 are a direct charge for those services.”

Furthermore, the statement outlined seven key areas on which it intends to spend the funds accrued from the levy. The statement noted that funds from the levy will cater for the procurement, distribution and administration of Covid-19 vaccines. Also, it will cater for the establishment of 14 medical waste treatment facilities across the country. These waste treatment facilities will ensure safe disposal of medical waste. The levy will also see to the completion of 33 major health projects approved for implementation.

Furthermore, it said the levy will cater for the construction of 100-bed district hospitals in 101 districts with no hospitals. Also, the levy will cater for seven regional hospitals for the new regions under the government’s Agenda 111. In addition, the levy will help recruit more health care professionals to fill the 111 district hospitals. Thus, supplementing the 100,000 health workers recruited so far under the current administration.