The President of the Automobile Assemblers Association of Ghana, Jeffrey Peprah, has appealed to the government to reinstate the 20% Value Added Tax (VAT) waiver on locally assembled vehicles ahead of the 2026 Mid-Year Budget Review.
His call comes as Finance Minister Dr Cassiel Ato Forson prepares to present the Mid-Year Budget Review to Parliament on Thursday, July 23.
The government removed the 20% VAT waiver for locally assembled vehicles at the beginning of 2026, a decision that industry players say has affected the sector.
Mr Peprah urged the government to focus on policies that promote investment, expand local industries and create jobs instead of depending mainly 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. That is where we will see what we want Ghana to be,” he said.
He believes restoring the tax relief would boost the local automobile assembly industry and attract more investment into the sector.
Mr Peprah also said the move would support the government’s vision of positioning Ghana as a leading automobile manufacturing hub in the sub-region.
