Importation tax reliefs on EV
In a significant development for Ghana’s infrastructure and environmental initiatives, the Tema Port is currently undergoing its second phase of expansion, marked by the laying of the foundation stone by President Nana Addo Dankwa Akufo-Addo. This expansion project, hailed as one of the most substantial public-private partnerships in Ghana’s history, is a collaborative effort between the Ghana Ports and Harbours Authority (GPHA) and a joint venture comprising APM Terminals and Africa Global Logistics. According to Mr. Mohammed Samara, the Chief Executive Officer of MPS, the first section of the second phase is set to be operational by July 2024, ushering in an era of enhanced capacity at Tema Port.
The ambitious expansion includes the commissioning of 15 additional gantry cranes and civil works covering 270,000 square meters, adding to the existing one million square meters. Mr. Samara envisions this transformation, positioning Tema Port as a formidable player in the maritime industry, competing favorably with major ports globally. With its geographical advantage, the upgraded port aims to become a maritime hub for trade along the west coast of Africa, capable of handling large container vessels carrying over 18,000 TEUs (Twenty-foot Equivalent Units). The Director-General of the GPHA, Mr. Michael Luguje, emphasized the strategic importance of the port expansion in positioning Ghana’s ports as the hub for Africa.
Simultaneously, the Ghanaian government has taken a proactive step towards fostering sustainability by announcing a tax relief on the importation of electric vehicles, specifically targeted for public transport. Finance Minister Ken Ofori-Atta outlined this initiative in the 2024 Budget, removing all import duties on electric vehicles intended for public transportation for an eight-year period. Additionally, there are import duty waivers on semi-knocked-down and completely knocked-down electric vehicles imported by registered EV assembly companies, along with a two-year waiver of VAT on locally assembled vehicles. These tax incentives align with the government’s commitment to promoting a green economy and have been welcomed by industry players, including Jorge Appiah, CEO of Solar Taxi, Ghana’s leading electric vehicle company.
Appiah sees these tax reliefs as a positive step, stating that they will not only drive the adoption of electric vehicles but also attract significant green investments into the country. He anticipates a reduction in the prices of electric vehicles, leading to price parity with traditional fuel cars and making them more accessible to the general public. Moreover, the move is expected to contribute to a reduction in air pollution, particularly in city centers, positioning Ghana as an environmentally conscious destination. As Ghana embraces these dual initiatives of port expansion and sustainable transportation, the nation is poised for economic growth and environmental stewardship.