Zero VAT on locally assembled vehicles a game-changer – Asad Nazir

Chief Executive Officer of Silver Star Auto Ltd, Asad Nazir, has revealed that the free Value Added Tax (VAT) on locally assembled vehicles is a game-changer to saving Ghanaians 12.5 percent of their income; hence, they should take advantage of it.

Due to the local assembly policy introduced by the government, this incentive, according to him, ranged between GH¢60,000 to GH¢100,000 on their models compared to imported ones.

“Imagine you bring a vehicle which is not assembled in Ghana. You have to pay 12.5 percent VAT on it; and you have a vehicle that is assembled in Ghana and there is zero VAT on it, why would you go and pay extra duties on imported vehicles in this tough time,” he said.

Mr. Nazir made this disclosure in an interview with the B&FT on Tuesday, during a working visit to its assembly plant in Tema by the French Chamber of Commerce, indicating that Ghana is on the path to attaining self-sufficiency through its Buy Ghana, Eat Ghana, and Wear Ghana Agenda. Therefore, Ghanaians should play a relentless role to help government achieve such worthy course by patronising locally produced items, especially vehicles which attracts no VAT.

General Manager of Japan Motors, Sales and Marketing Department, Amine Kabbara, noted that the company has invested in the assembly plant based on the promise from government after announcing the auto policy. However, they are waiting on government to also play its role in implementing the policy.

“This is key for the economic transformation of Ghana. Thankfully, other players are on board as well, but we are one of the first players to bring confidence to that agenda; so, the ball and eye is on the government to move to the next phase,” Mr. Kabbara said.