Covid-19 health levy not to recover cost of 2020 water and electricity freebies – Oppong Nkrumah
The Minister of Information, Kojo Oppong Nkrumah has dismissed claims that the proposed Covid-19 health levy is a ploy by government to recover the cost of free water and electricity enjoyed by Ghanaians in 2020.
Speaking at a press briefing to update Ghanaians on the status of the country’s fight against the pandemic, Mr. Oppong Nkrumah said the 2021 Budget Statement never indicated that the purpose of the levy was to pay for the freebies.
Referring to page 58 of the Budget Statement, he stated: “Government has never said that we have to pay for the free water and free electricity of 2020. The COVID-19 levy is not for free water and electricity. For the avoidance of doubt, the Ministry of Finance statement deals with it. But if you also go into the budget, if you go to I think page 58 in their statement, they said page 75 but its actually page 58 of the full document. It outlines the full uses of the COVID-19 levy. If I just may have the opportunity to share with you, it’s on page 58. It is all listed there. It never says anywhere that we have to pay for the free water and electricity of 2020, it outlines what the government has done so far in connection with the COVID-19 program, and then it goes on to make the point that to provide the requisite resources to sustain the implementation of these measures, the government is proposing the introduction of a COVID-19 health levy of 1% increase in the National Health insurance levy and 1% point increase in the VAT flat rate and for that purpose. We urge you to highlight the correct position as it has been put out by the Ministry of Finance.”
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His statement follows backlash from the general public and some members of the opposition National Democratic Congress (NDC) that government has not been transparent in its dealings and that per the 2021 budget statement, only GHS1.7 billion of the allocated GHS19 billion for issues of COVID-19 in 2020 was utilized.
