President John Dramani Mahama revealed on Tuesday that Ghana’s VAT exemption for vehicle assemblers will only apply if manufacturers meet a specific local production threshold. The policy, still being finalised by the Ministries of Finance and Trade and Industry, is intended to curb companies that import almost‑complete vehicles, perform minimal assembly and still claim government incentives.
Speaking at the commissioning of Zonda Tec’s expanded assembly plant, Mahama explained that the new regime will require a meaningful portion of the assembly process to be carried out in Ghana before tax relief can be accessed. “We don’t want manufacturers who bring the whole car, just remove the steer and the tyres and say we’ve assembled this vehicle in Ghana,” he said.
The President added that the exact percentage of local assembly required, along with other details of the revised incentive scheme, will be disclosed in the upcoming budget presented to Parliament by Finance Minister Cassiel Ato Forson.
