Restore 20% VAT waiver on locally assembled vehicles — Auto assemblers
The President of the Automobile Assemblers Association of Ghana, Jeffrey Peprah, has urged the government to reinstate the 20% Value Added Tax (VAT) waiver on locally assembled vehicles ahead of the 2026 Mid-Year Budget Review.
His appeal comes as Finance Minister Dr Cassiel Ato Forson prepares to present the Mid-Year Budget Review to Parliament on Thursday, July 23.
The tax relief for locally assembled vehicles was withdrawn at the start of 2026.
Speaking on Channel One TV’s The Point of View with Bernard Avle on Monday, July 20, Mr Peprah said government should focus on policies that promote investment and employment instead of depending primarily on tax revenue.
He argued that restoring the VAT waiver would provide the struggling local automobile industry with the immediate support needed to recover and expand.
Mr Peprah said the incentive would also help advance the government’s vision of positioning Ghana as a regional hub for automobile manufacturing.
He noted that the industry has made significant progress and only requires sustained policy support to achieve its full potential.
According to him, reinstating the 20% VAT waiver would enhance the competitiveness of locally assembled vehicles and stimulate further growth in the sector.
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