President John Dramani Mahama on Wednesday, April 2, assented to the Value Added Tax Amendment Bill, 2025.
The object of the Bill is to amend the Value Added Tax Act, 2013 (Act 870) to exempt the supply of motor vehicle insurance from Value Added Tax.
The Government has observed that the imposition of Value Added Tax on motor vehicle insurance has had a direct impact on household incomes as the incidence of the tax falls significantly on persons who cannot recover the tax.
Additionally, for commercial drivers, the imposition of VAT on motor vehicle insurance could lead to increased costs, as they may transfer the tax burden onto commuters by increasing fares.
Consequently, the Government has decided to exclude motor vehicle insurance from the scope of VAT on non-life insurance.
The passage of this Bill will provide relief to households and commuters while ensuring a fair and balanced tax system.
The event, which took place at the Presidency was witnessed by Dr Cassiel Ato Baah Forson, Finance Minister, Mr Ebenezer Ahumah Djietror, the Clark to Parliament, Mr Julius Debrah, the Chief of Staff, and Mr Felix Kwakye Ofosu, the Presidential Spokesman and Minister in-charge of Government Communications.
The rest are Mr Seth Emmanuel Terkper, a Presidential Advisor on the Economy and a former Finance Minister, Mrs Joyce Bawah Mogtari, Special Aide to the President and Presidential Advisor, and Mrs Marietta Brew Appiah-Oppong, Senior Legal Advisor to the President.
