Prof. Boadi Goes Hard On The Government For The Imposition Of 15% VAT On Insurance

In a blistering critique of the opposition National Democratic Congress (NDC), policy analyst and commentator Isaac Boadi has condemned the party’s previous implementation of a 15% Value Added Tax (VAT) on insurance, describing it as a “bait-and-switch” scam that reveals the party’s lack of credibility when it comes to economic management and public trust.

Speaking on a political discussion programme earlier this week, Boadi did not mince words as he addressed what he termed the “deceptive economic strategies” of the NDC. According to him, the introduction of VAT on insurance services blindsided many businesses and individuals who had been assured of relief and reform in the financial sector.

“You don’t promise Ghanaians economic relief and then turn around to slap a 15% VAT on something as critical as insurance,” Boadi said. “It’s classic bait-and-switch — lure the people with soft promises, then shift the burden on them through taxes once you have power.”

He argued that insurance is a core financial safety net for businesses and individuals alike, and that taxing it heavily through VAT created a ripple effect that discouraged uptake and deepened financial vulnerability, especially among small- and medium-sized enterprises.

Boadi emphasized that such decisions speak to a deeper issue — a trust deficit between the NDC and the Ghanaian people. He claimed that the party’s record demonstrates a pattern of policy unpredictability and political expediency.

“This is why the NDC struggles with trust. When they are out of office, they promise the moon, but once they get into power, the very sectors they vowed to support become targets for taxation,” he said.

He cautioned the public to be wary of “repackaged promises” as the country heads toward another election cycle in 2024.

“Don’t be swayed by nice slogans or emotional appeals. Look at the record. Look at the policies. Who introduced that 15% VAT on insurance? Who bore the brunt of it?” he queried.

The Professor further pointed out that the VAT on insurance not only affected consumers but also put additional pressure on the insurance industry itself. He noted that some companies experienced declining policy renewals and a drop in new policyholders during the period the tax was in place.

“Insurance is a stabilizing force in any economy. When you tax it that aggressively, you undermine the long-term resilience of both businesses and households. That’s what the NDC failed to understand — or worse, chose to ignore,” he added.

He called on political parties — including the ruling New Patriotic Party (NPP) — to develop consistent, transparent policies that do not shift radically with every change in government. He urged Ghanaians to scrutinize not only campaign promises but also the historical conduct of political actors.

“We need to break the cycle of political amnesia. When parties take decisions that hurt the people, they must be held accountable at the polls. No more bait-and-switch.”

As political campaigns heat up and economic issues dominate public discourse, analysts like Isaac Boadi continue to challenge both the electorate and the political class to move beyond rhetoric and focus on track records and tangible outcomes.