The Minister of Finance, Dr. Cassiel Ato Baah Forson, has presented a bill to Parliament seeking to amend the VAT Act.
This amendment aims to exempt the supply of motor vehicle insurance from VAT, as stated in the 2025 budget.
It also sought to fulfill the National Democratic Congress’ promise to abolish Value Added Tax (VAT) on motor insurance policies.
The First Deputy Speaker, Bernard Ahiafor, who presided over proceedings on Friday referred the bill to the Finance Committee for consideration and reporting back to the House.
“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,” Mr Ahiafor stated.
Accorsing to the finance minister, the move is expected to bring relief to motorists and insurance companies, who had been advocating the removal of VAT on motor insurance policies.
The exemption is likely to reduce the cost of motor insurance, making it more affordable for vehicle owners.
The Finance Committee will now review the bill and provide a report to Parliament, paving the way for the amendment to become law.
If passed, the exemption will take effect, providing welcome relief to the insurance industry and vehicle owners.
Source: GNA