In their 2024 People's Manifesto under "Transport Infrastructure and Road Safety" (Section 4.5), the NDC made a clear and emphatic pledge:

“The next NDC government will absorb the cost of non-life insurance premiums for vehicle owners as part of the road fund levy, eliminating the burden of direct premium payments.”

The promise was straightforward: no more out-of-pocket insurance costs for motorists, with the government covering premiums through the existing Road Fund Levy. The stated aim? To ease financial pressure on ordinary Ghanaians while keeping mandatory insurance intact.

Yet, in a stunning act of political deception, the same NDC administration has now announced that, starting July 1, 2025, a 15% VAT will be applied to non-life insurance premiums. This is not just a minor policy adjustment; it is a full-scale betrayal of their own manifesto commitment. The same party that vowed to abolish insurance costs is now adding a tax to them.

According to Prof. Isaac Boadi, Dean, Faculty of Accounting and Finance, UPSA and Executive Director, IERPP, the hypocrisy is staggering. The NDC campaigned on relieving financial burdens, yet their first major fiscal move is to increase costs for millions of Ghanaians.

Consider the math: if a driver’s annual insurance premium was GH₵1,000, the new 15% VAT adds GH₵150, pushing the total to GH₵1,150. Where is the promised relief? Instead of eliminating payments, they have made insurance more expensive.

This reversal is not just disappointing; it is a deliberate breach of trust. Ghanaians are already crushed under high fuel prices, VAT on electricity, and the controversial E-Levy. Now, the NDC wants to tax even the basic safety net of insurance, something they swore to make free.

As one frustrated citizen put it: “You taxed our fuel, water, electricity, taxed our income, and now you tax our safety? What next, a tax for breathing?”

For ordinary citizens, this means higher transport costs, as drivers pass the VAT burden onto passengers through increased fares. More uninsured vehicles, as struggling motorists skip coverage to avoid the extra cost, putting everyone at risk. Ordinary trust in political promises is eroded, reinforcing the belief that manifesto pledges are just empty words.

For businesses, the damage is worse: Logistics companies will see operational costs spike, leading to pricier goods and services. Small businesses, already battling a harsh tax environment, now face another financial hurdle. Transport operators may cut corners on insurance to save money, exposing themselves to legal and financial risks.

This is not governance, it is a bait-and-switch scam. The NDC promised relief but delivered another tax. They claimed to stand for the people, yet their actions punish drivers, businesses, and the poor. If they can reverse such a major pledge within months, what other manifesto promises will they discard?

Ghanaians must demand accountability. Politicians who lie to win power must not be allowed to govern unchecked. The NDC’s 15% VAT on insurance is not just a policy shift; it is proof that their word cannot be trusted. The question now is: Will Ghanaians hold them to account, or will this betrayal go unanswered?