Restore 20% VAT Waiver to Save Local Auto Industry — Assemblers Association President Urges Gov’t Ahead of Mid‑Year Budget

President of the Automobile Assemblers Association of Ghana, Jeffrey Peprah, is urging government to reinstate the 20% VAT waiver on locally assembled vehicles as Finance Minister Dr Cassiel Ato Forson prepares to present the 2026 Mid‑Year Budget Review on Thursday, July 23.

The tax incentive, which supported Ghana’s emerging automobile manufacturing ecosystem, was scrapped at the start of 2026 — a move industry players say has slowed investment and weakened competitiveness.

Speaking on The Point of View on Monday, July 20, Mr Peprah appealed directly to the Finance Minister, stressing that Ghana cannot build a strong automotive hub by relying solely on taxation.

“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.”

He argued that restoring the VAT waiver is critical immediate support needed to get the industry “back on its feet.”

According to him, the incentive is central to Ghana’s ambition of becoming West Africa’s automotive manufacturing hub.

“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.”

Mr Peprah emphasised that without the waiver, local assemblers lose a competitive advantage, making it harder to attract investment and scale production.

“We need to start from somewhere. It’s immediate support that we need to get us back on our feet.”

His call adds pressure on government as stakeholders await the Mid‑Year Budget Review, hoping for policy adjustments that will boost industrial growth and protect jobs in Ghana’s fast‑developing automobile sector.