Finance Minister Dr Cassiel Ato Baah Forson has announced that the government will review and tighten tax incentives for Ghana's local vehicle assembly industry after determining that existing exemptions have been widely abused over the past five years.

Speaking in an interview on Citi FM on Friday, July 24, 2026, Dr Forson said the government remains committed to supporting genuine vehicle assembly operations but will close loopholes that have allowed some importers to improperly benefit from tax exemptions.

"We did give them a rebate for, I think, five years. After review, we noticed that it has been grossly abused," he said.

Debt distress risk improves from high to moderate as sustainability outlook strengthens

Dr Forson explained that the abuse stems from the interpretation of provisions covering semi-knocked down (SKD) and completely knocked down (CKD) vehicle imports.

"The law mentioned semi-knocked down and completely knocked down. Some bring in cars without a steering wheel and claim they are knocked down and that they are entitled to a tax exemption," he said.

He added that others have imported vehicles with only minor components removed to qualify for tax relief.

"Some bring in a car without the wheels and tyres, and they say it's knocked down and get the VAT exemption and all," he stated.

According to the Finance Minister, the government can no longer allow such practices to continue.

"Government felt that the abuse cannot continue. Clearly, we want to review that law and tighten it to cover genuine semi-knocked down and completely knocked down vehicles," Dr Forson said.

He stressed that the government's objective is not to undermine Ghana's automotive assembly industry but to ensure that the incentives benefit legitimate manufacturers.

"We recognise that you cannot build a car entirely from scratch here. Even countries that manufacture vehicles import some parts from other countries," he said.

Dr Forson said the government would engage industry players to develop clearer rules that support genuine assembly operations while preventing abuse.

"We will actually work with them so that we can clean the sector and bring it back," he added.

ANAS/MA

Ghana's recovery due to superior economic management - Ato Forson