In a significant step toward tax relief for vehicle owners, Finance Minister Dr. Cassiel Ato Forson has presented a bill to Parliament proposing an amendment to the Value Added Tax (VAT) Act to exempt motor vehicle insurance from VAT.
The bill aligns with the government’s commitment, as outlined in the 2025 budget, to abolish VAT on motor insurance policies. The move is expected to reduce the financial burden on motorists and make vehicle insurance more affordable.
Following its presentation, the First Deputy Speaker, Bernard Ahiafor, directed the bill to the Finance Committee for further scrutiny and recommendations.
“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,” Ahiafor announced.
If passed, the amendment will mark a key policy shift in the government’s efforts to ease economic pressures on individuals and businesses while improving compliance in the insurance sector.
