Ghana Moves to Scrap VAT on Motor Insurance, Finance Minister Presents Bill to Parliament

Accra, Ghana - 14 March, 2025 -  In a significant move aimed at reducing financial burdens on citizens, Ghana's Finance Minister, Dr. Cassiel Ato Forson, has tabled a bill in Parliament seeking to exempt motor vehicle insurance from Value Added Tax (VAT), a measure expected to ease economic pressures on individuals and businesses nationwide.

The proposed amendment to the VAT Act fulfills a key promise made by the government in the 2025 budget, aiming to make motor insurance more affordable and accessible to the general public. If passed, the bill will eliminate VAT charges on motor insurance policies, potentially boosting the country's insurance sector and supporting broader economic growth.

First Deputy Speaker Bernard Ahiafor has referred the bill to the Finance Committee for thorough review and reporting, paving the way for its potential passage into law.

“Honorable members, the bill on Value Added Tax amendment 2025, is accordingly read for the first time and referred to the finance committee for consideration and report,” he stated.

As the committee begins its consideration, stakeholders and citizens alike eagerly await the outcome, hoping for a more affordable and inclusive insurance market.

Source: Lead News Online