The government has proposed the introduction of a COVID-19 Health Levy and a Sanitation and Pollution Levy in the 2021 budget.
The proposal involves the payment of 10 pesewas on the price per litre of petrol/diesel under the Energy Sector Levies Act (ESLA) for the Sanitation and Pollution Levy. As well as a 1% increase in the National Health Insurance Levy and 1% increase in the VAT Flat Rate for the COVID-19 Health Levy.
In the budget presented to Parliament by the Minister for Parliamentary Affairs, Hon. Osei Kyei Mensah-Bonsu, the government acknowledged that “never before in recent history has an epidemic triggered such dramatic changes to lives and livelihoods simultaneously.”
Therefore the proposed levies, according to government, are to provide the requisite resources to address challenges and fund activities that will benefit all Ghanaians.
COVID-19 Health Levy
The budget noted that COVID-19 has caused “additional health spending that far exceeds the annual budget for health.” As such, there is the need to provide the requisite resources needed to support actions being implemented to address the pandemic.
The actions include the facilitation of an additional seventeen million, six hundred thousand (17,600,000) vaccines to be delivered by June. With more doses are to come in the course of the year, according to the budget.

Additionally, government has revealed that thirty-three (33) major health projects have been approved for implementation at a cost of €890 million. And announced the establishment of fourteen (14) medical waste treatment facilities across the country for safe disposal of medical waste, in collaboration with the private sector.
The budget also cited the need to recruit more health care professionals in addition to the 100,000 recruited in the President’s first term. And announced the construction of a number of hospitals.
“Agenda 111, will see to the construction of 100-bed District Hospitals in one hundred and one (101) Districts with no hospitals, seven (7) Regional Hospitals for the new Regions, including one for the Western Region, the construction of two (2) new psychiatric hospitals for the Middle Belt and Northern Belt, respectively, and the rehabilitation of Effia-Nkwanta Hospital in the Western Region.”
2021 Budget
Sanitation and Pollution Levy
The government also signalled in the budget that, there is still a lot more to be done notwithstanding the progress made in the areas of sanitation and pollution.
As a result, the budget highlighted the need to improve urban air quality and combat air pollution. As well as construct medical waste treatment facilities to prevent generation of infectious diseases especially under the Coronavirus Treatment Programme.
It also stressed on the need to support fumigation of public spaces, schools, health centres and markets. And revamp/reconstruct poorly managed landfill facilities, amongst other provisions.
“These are all very critical investments that have to be made for the benefit and dignity of all Ghanaians. These will ensure sustainable sanitation management, improve the quality of life and reduce the number of deaths and diseases from poor sanitation.”
2021 Budget
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