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Government is introducing a Covid-19 Health Levy of 1% on Vat, Flat Rate Scheme (VFRS) and a 1% on National Health Insurance Levy (NHIL) as part of revenue measures to help the economy recover.

Minister of Parliamentary Affairs and Majority leader Osei Kyei Mensah Bonsu who disclosed this during the 2021 Budget Statement in Accra on Friday 12th March 2021 said the levies will be used for the procurement of vaccines and establishment of 14 medical waste treatment facilities.

This is because, he said, the Covid-19 pandemic has caused additional health spending that far exceeds the annual budget for health.

"To provide the requisite resources to address these challenges and fund these activities, the government is proposing the introduction of a Covid-19 Health Levy of a one percentage point increase in the National Health Insurance Levy and a one percentage point increase in the VAT Flat Rate to support expenditures related to Covid-19,” he disclosed.
 
The Caretaker Finance Minister said the levy “will also assist in the construction of 33 major health projects, the recruitment of more health professionals and agenda 111”.
 
Agenda 111 would see the construction of 100-bed capacity district hospitals in one hundred and one districts with no hospitals. It is the latest ever investment in healthcare infrastructure in Ghana’s history and a massive vision by the Akufo-Addo led administration for Ghana’s Healthcare sector.