Government to Exempt Motor Vehicle Insurance from VAT
The Ghanaian government is moving forward with a plan to exempt motor vehicle insurance from Value Added Tax (VAT). This initiative, spearheaded by the Minister of Finance, Dr. Cassiel Ato Forson, is designed to alleviate financial pressures on vehicle owners and encourage greater participation in the insurance sector.
Dr. Forson has presented a bill to Parliament that seeks to amend the VAT Act, aligning with commitments made in the 2025 budget. The proposed legislation has been referred to the Finance Committee for thorough review. “Honourable members, the Value Added Tax Amendment Bill 2025 is hereby read for the first time and referred to the Finance Committee for consideration and report,” announced First Deputy Speaker Bernard Ahiafor.
Industry experts anticipate that the exemption, if approved, will make insurance policies more affordable, thereby increasing insurance penetration across the country. Analysts also suggest that the measure could strengthen compliance with mandatory motor insurance regulations, ultimately helping vehicle owners. Parliamentary discussions on the bill are scheduled in the coming weeks.
