The Minister for Finance, Dr. Cassiel Ato Forson, has presented a bill to Parliament seeking to amend the Value Added Tax (VAT) Act to exempt motor vehicle insurance from VAT.
This move aligns with the government’s commitment, as outlined in the 2025 budget, to remove VAT charges on motor insurance policies.
During a parliamentary session, the First Deputy Speaker, Bernard Ahiafor, referred the bill to the Finance Committee for further review and recommendations.
The proposed amendment is expected to provide relief to vehicle owners by reducing the cost of insurance premiums.
The bill’s passage will mark a significant step in the government’s broader strategy to ease financial burdens on citizens and enhance accessibility to essential services like vehicle insurance.
Parliament is set to deliberate on the proposal in the coming weeks.
