The 20% VAT waiver for locally assembled vehicles has returned to the centre of Ghana's automotive policy debate, with industry leaders urging the government to reinstate the incentive before the 2026 Mid-Year Budget Review.
President of the Automobile Assemblers Association of Ghana, Jeffrey Peprah, says restoring the tax relief would give the struggling local vehicle assembly industry the boost it needs after the incentive was withdrawn at the start of the year.
His appeal comes as Finance Minister Dr Cassiel Ato Forson prepares to present the Mid-Year Budget Review to Parliament on Thursday, July 23.
Industry Seeks Immediate Relief
Speaking in an interview, Mr Peprah argued that government should focus on creating an environment that attracts investment and generates employment instead of relying primarily on tax revenue.
"It's an immediate support we need to get us back on our feet. Mr Finance Minister, Dr Ato Forson, we know the government needs money; we don't run the economy by only taxes; we have to create jobs, we have to create an enabling environment for more investors." - Mr. Peprah
He maintained that bringing back the VAT waiver would strengthen the competitiveness of locally assembled vehicles while encouraging manufacturers to expand production.
Vision for an Automotive Hub
Mr Peprah believes the incentive is closely tied to Ghana's ambition of becoming a regional centre for automobile manufacturing.
"Ghana being the hub of the automotive industry, these are the things that will grow us. We are almost there, and we just have to make sure this industry grows," he said.
He stressed that the industry has reached a critical stage where policy support could determine its future direction.
"We need to start from somewhere. It's immediate support that we need to get us back on our feet," he added.
The automobile assemblers are now looking to the Mid-Year Budget Review for a policy reversal they say would restore confidence, attract fresh investment and help position Ghana as West Africa's automotive manufacturing hub.
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