ACTPR Urges Gov't to Redirect COVID-19 Levy to Fund 'Mahama Cares' Medical Tr
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Ted News Ghana Blog of Saturday, 10 May 2025
The African Centre for Tax Policy Research (ACTPR) has called on the government to reconsider its decision to abolish the 1% COVID-19 Health Recovery Levy, proposing instead that the levy be repurposed to support the newly proposed Ghana Medical Trust Fund, popularly known as Mahama Cares.
The Centre argues that the COVID-19 levy, which generated over GHS 3 billion in 2024 alone, presents a more reliable and sustainable revenue source for the Trust Fund compared to current proposals that rely on portions of the National Health Insurance Levy (NHIL), government budget allocations, voluntary donations, and donor support.
“These are voluntary contributions, and they are unpredictable and politically vulnerable. They are unlikely to meet the recurring, high-cost nature of dialysis and other chronic diseases,” said Francis Timore Boi, a tax consultant with ACTPR, in an interview with Citi Business News.
The Centre recommends reforming the levy to make input VAT deductible for businesses while ring-fencing the funds exclusively for critical healthcare services. This, they argue, would ease the tax burden on businesses and help secure long-term financing for life-saving treatments.
“Although the government plans to abolish the 1% COVID-19 levy, we believe it can be reformed and redirected towards the Trust Fund. Given the serious and ongoing financial needs associated with chronic illnesses, it would be ideal to secure a reliable and permanent source of funding,” Timore Boi added.
ACTPR also stressed that public confidence in the initiative hinges on transparency and accountability: “We believe Ghanaians will back this initiative, especially if there is clear accountability on how the money is used to assist people living with chronic conditions.”
The Mahama Cares Trust Fund aims to provide financial support for the treatment of chronic and high-cost illnesses such as kidney failure, cancer, stroke, and cardiovascular diseases, ensuring that no Ghanaian is denied access to critical healthcare due to financial barriers.
