Customers of telecommunication giant MTN will pay more talk time and data charges following the increase of 1% in the National Health Insurance Levy.

In a statement released by the telecommunication company, the introduction of the Covid-19 Health Recovery Levy by government has resulted in an increase in the NHI Levy, which means customers would have to pay more to foot the levy which takes effect from May 1, 2021.

Statement to customers

"Dear Valued Customer,
Following the introduction of the Covid -19 Health Recovery Levy, resulting in a 1% increase in the National Health Insurance Levy, your talk time/ data volumes will be adjusted to reflect the tax change.

"This takes effect from 1st May 2021. Keep safe and remember to wear your mask everywhere you go. Thank you," MTN said in a press statement.

Tax measures in 2021 Budget

Government announced in the 2021 budget that it will be introducing a covid-19 Health Levy of 1% on VAT Flat Rate Scheme (VFRS) and a 1% on National Health Insurance Levy (NHIL). This was part of revenue measures to help the economic recovery process.

The Caretaker Finance Minister, Osei Kyei Mensa Bonsu who disclosed this during the 2021 Budget Statement Friday, said the levies will be used for the procurement of vaccines and establishment of 14 medical waste treatment facilities.

The Parliamentary Affairs Minister said the levy “will also assist in the construction of 33 major health projects, the recruitment of more health professionals and agenda 111.”

He said the covid-19 pandemic has caused additional health spending that far exceeds the annual budget for health.

The levy was approved by parliament as part of new tax measures by government on 30th March, 2021, amidst stiff resistance from the NDC minority in parliament.

According to Minority Leader, Haruna Iddrisu, the inability of the Health Ministry to justify the manner in which Covid-19 funds were expended at the height of the pandemic makes it difficult to appreciate the judiciousness to be exhibited in the new levy.