Concerns from vehicle assemblers over slowing production and the future of investments in Ghana’s automotive industry have prompted the government to review the removal of VAT exemptions on locally assembled vehicles.
Industry players say the introduction of a 20 percent VAT has made locally assembled vehicles less competitive compared to imported ones and could affect jobs and expansion plans in the sector.
Speaking at the Citi Business Festival 2026 Roundtable on Thursday, Head of Strategic Manufacturing at the Ministry of Trade, Agribusiness and Industry, Kwasi Ofori-Antwi, said the government is reconsidering the policy.
“There was an assessment on the industry by the Ministry of Finance and the Ministry felt that the VAT which was to be enjoyed by consumers was not trickling down to industry, so that was put on hold,” he said.
According to him, industry stakeholders have since engaged the Finance Ministry on the issue.
“Government didn’t want industry to hold on to that perception, so government will be reviewing that and we are very hopeful that it will be restored,” he added.
The VAT exemption formed part of incentives introduced under the Ghana Automotive Development Policy launched in 2018 to attract vehicle manufacturers and support local assembly operations.
