The government has provided details of how it intends to use the COVID-19 levy.

This follows recent reports suggesting that the government will use the Covid-19 levy to pay for the 2020 water and electricity freebies.

The government refuted claims that the newly-approved levy will be utilised in paying for the free water and electricity expenditure of 2020.

In a statement issued by the Ministry of Finance on Friday, 19 March 2021, the government outlined seven key areas on which it intends to spend the funds accrued from the levy.

According to the statement, the free water and electricity of 2020 “ought not to be misconstrued to mean the new taxes of 2021 are a direct charge for those services.”

Providing details on the appropriation of the levy, the statement noted that funds from the levy will be used in the procurement, distribution and administration of Covid-19 vaccines, establishment of 14 medical waste treatment facilities across the country for safe disposal of medical waste and the completion of 33 major health projects approved for implementation.

The statement also added that the levy will be used for the construction of 100-bed district hospitals in 101 districts with no hospitals, seven regional hospitals for the new regions under the government’s Agenda 111, recruit more health care professionals to fill the 111 district hospitals and supplement the 100,000 health workers recruited so far under the current administration.