- Government is considering restoring the VAT exemption on locally assembled vehicles after assemblers said the 20% VAT has hurt production and investment.
- Officials said the policy is being reviewed after discussions with the Ministry of Finance, with hopes the exemption will be reinstated.
- Industry players argue the tax makes locally assembled vehicles less competitive than imports and could threaten jobs and operations.
- The VAT exemption was originally part of Ghana’s Automotive Development Policy launched in 2018 to attract investment, support local manufacturing, and create jobs.
- Restoring the exemption would likely boost demand for locally assembled cars and support Ghana’s goal of becoming a regional automotive hub.
Source: citinewsroom.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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