Gov’t To Introduce New VAT Incentives For Local Vehicle Assembly
President Mahama says manufacturers will have to meet local production thresholds to qualify for VAT exemptions.
- VAT exemptions will be tied to local production levels.
- New incentive framework to be outlined in the national budget.
- Govt seeks deeper localisation in the automotive industry.
The government is set to introduce a new VAT incentive framework for vehicle assembly companies operating in Ghana.
Under the proposed system, manufacturers will be required to meet specified local production thresholds before they can benefit from VAT exemptions.
President John Dramani Mahama announced the plan while commissioning Phase Three of the Zonda Tec Ghana Limited Vehicle Assembly Plant.
He said the Ministries of Finance and Trade and Industry are finalising the revised incentive framework, which is aimed at promoting genuine local manufacturing and increasing value addition in Ghana’s automotive sector.
President Mahama explained that tax exemptions would be linked to the level of local production achieved by manufacturers.
He said the policy would also prevent companies from importing fully built vehicles, making minor adjustments locally and presenting them as vehicles assembled in Ghana.
The President said the Finance Minister would provide further details of the new incentive package in the upcoming national budget.
He stressed that vehicle assembly should not be the ultimate goal, noting that Ghana must develop an integrated automotive industry with strong participation from local suppliers.
The revised incentives are expected to promote deeper localisation, facilitate technology transfer and create opportunities for Ghanaian small and medium-sized enterprises to participate in the automotive value chain.
President Mahama also reaffirmed the government’s commitment to creating quality jobs, reducing dependence on imported vehicles, conserving foreign exchange and developing competitive automotive products for the ECOWAS and wider African markets.
