Gov’t to introduce new VAT incentives for local vehicle assembly

President John Dramani Mahama has unveiled plans to implement new VAT incentives for vehicle assembly companies in Ghana. These incentives will only be granted to firms that meet specific local production requirements. The Ministries of Finance and Trade and Industry are currently finalizing the new incentive framework, which aims to promote genuine local manufacturing and enhance the value of vehicles assembled in Ghana.

Speaking at the inauguration of Phase Three of the Zonda Tec Ghana Limited Vehicle Assembly Plant, Mahama emphasized that the new system will tie tax exemptions to the percentage of local production achieved by manufacturers. He clarified that the objective is to discourage companies from importing fully constructed vehicles and merely making minor modifications locally before declaring them as locally assembled products.

The Finance Minister will outline the details of the new incentive package in the next national budget. Mahama stressed that the primary goal is to establish an integrated automotive industry with significant involvement from local suppliers. He hopes the revised incentives will encourage deeper localisation, facilitate technology transfer, and provide opportunities for Ghanaian SMEs to participate in the automotive value chain.

Mahama reiterated the government's commitment to creating quality jobs, reducing the country's dependency on imported vehicles, conserving foreign exchange, and developing competitive automotive products for the ECOWAS and African markets.