Automobile Dealers Union of Ghana (ADUG) has reduced car prices by 15% following exchange rate stability and the removal of the COVID-19 levy.

This was announced in a statement signed by its President, Eric Kwaku Boateng, who indicated that the move was influenced by the Union’s long-standing promise to Ghanaians that any meaningful stabilisation of the exchange rate would translate into fairer vehicle pricing rather than excess profiteering.

The Union also stated that its members have acted in good faith and with a strong sense of national responsibility.

"The Automobile Dealers Union of Ghana (ADUG) wishes to formally inform the general public that, in line with our earlier commitment, members of the Union have reduced vehicle prices by an average of 15% following the relative stabilization of the Ghana cedi against the US Dollar, as well as the abolition of Covid-19 levy," a part of the statement read.

It expressed appreciation to Ghanaians for their patience, trust, and confidence in the organized automobile trade, while reaffirming its resolve to always act in the best interest of consumers and the national economy.

Over the past months, the cost of vehicles in Ghana has been significantly impacted by exchange rate volatility, high import duties, shipping costs, and global supply chain pressures.

In November 2025, the National Democratic Congress (NDC) government honoured it promise of scrapping COVID-19 Health Recovery Levy introduced during the pandemic era.

Introduced on 31 March 2021 under Act 1068 during the tenure of former President Nana Addo Dankwa Akufo-Addo, the levy applied a 1% charge on the supply of goods and services in Ghana, excluding certain items. and on imports of goods and services. According to the New Patriotic Party (NPP), the levy was intended to help the government raise funds to fight the pandemic and support recovery efforts.

However, presenting the 2026 Budget Statement and Economic Policy to Parliament on Thursday, November 11, Finance Minister Cassiel Ato Forson disclosed that the government has abolished the levy with immediate effect.

Also, the Value Added Tax (VAT) Bill 2025, expected to make Ghana’s tax system more equitable, transparent, and business-friendly, received parliamentary approval as members of Parliament (MPs) gave the nod on Wednesday, November 26.

Speaking on the floor of Parliament, Minority Leader Alexander Afenyo-Markin noted that businesses will be burdened with financial challenges as the VAT Bill will affect their operations. Reacting to Afenyo-Markin, the Deputy Finance Minister, Thomas Nyarko Ampem defended that the approved Bill will instead will simplify compliance.

Presenting the 2026 Budget Statement and Economic Policy to Parliament on Thursday, November 11, Finance Minister Cassiel Ato Forson hinted that the government had completed the design of a modernised Ghana Value Added Tax (VAT) system fit for the country’s economic transformation agenda.

He mentioned, “As the new VAT reforms will do the following, we will abolish the COVID-19 Health Recovery Levy, Mr Speaker; we will abolish the decoupling of GetFund and National Insurance Levies from the VAT tax base. The current VAT rate will be reduced from 21.9% to 20%.

“In the 2025 budget, in the mid-year fiscal policy review, government made a firm promise to reform Ghana’s Value Added Tax (VAT) system to make it fairer, simpler, and more efficient. We pledged to remove distortions, address the cascading effects inherited in the VAT system, strengthen compliance, and create a tax regime that supports both businesses and fiscal stability. These distortions have negatively impacted overall welfare, increasing the deadweight loss in the economy and reducing VAT compliance.

“Today, Mr Speaker, I am proud to report to this House that we have finally delivered on that promise. After months of detailed analysis and broad consultations with stakeholders, we have completed the design of a modernised VAT system fit for Ghana’s economic transformation agenda. Government is therefore submitting to this House today, for approval, a bold package of VAT reforms that will make our tax system more equitable, transparent, and business-friendly.

“The new VAT reforms will do the following: we will abolish the COVID-19 Health Recovery Levy. We will abolish the decoupling of GetFund and National Insurance Levies from the VAT tax base. We will abolish VAT on the recognition of minerals. We will reduce the effective VAT rate from 21.9% to 20%. We will raise the VAT registration threshold from GH₵200,000 to GH₵750,000.

“We will extend VAT zero rating on the supply of local manufacturing textiles to 2028. Mr Speaker, for emphasis, we promised to abolish the COVID Levy, and with the support of this House, I am proud to say that today, the COVID Levy is accordingly abolished. By abolishing the COVID-19 Levy, the government is putting GH₵3.7 billion in the pockets of individuals and businesses in 2026 alone”.