Twene Jonas Hails President Mahama’s Decision To Scrap VAT on Motor Insurance
- US-based Ghanaian commentator Twene Jonas has praised President John Mahama for scrapping VAT on motor insurance
- He called the move a smart decision that would ease financial pressure on car and commercial vehicle owners
- The Finance Minister announced the cancellation as part of tax reforms promised during the 2024 election campaign
US-based Ghanaian social commentator Twene Jonas has lauded President John Mahama for scrapping the Value Added Tax (VAT) on motor insurance.
According to Jonas, the decision of the President Mahama-led administration to scrap it was a smart move, as it would lessen the burden on car owners, including commercial drivers.
Source: UGC
"Shout out to John Mahama. God bless His Excellency. I hear he has scrapped the VAT on vehicle insurance. He has done well. That tax never made sense to me," he said.
Introduction of the Motor Insurance VAT
The motor insurance tax was introduced by the immediate past government, led by former President Akufo-Addo of the New Patriotic Party (NPP), in December 2023.
However, the current administration, led by President John Dramani Mahama, decided to cancel it in fulfilment of its 2024 election campaign promise to scrap some taxes.
On March 11, 2025, Ghana's new Finance Minister, Dr Cassiel Ato Forson, announced some tax cuts, including the motor insurance VAT, during the budget presentation in Parliament.
Finance Minister on cancelling Motor Insurance VAT
Dr Ato Forson explained during a recent interview the rationale behind the government's decision to abolish the tax.
Speaking on the JoyNews Channel, the Finance Minister said the decision was based on an analysis of its economic impact, adding that the government was committed to lessening the burden on the ordinary Ghanaian.
“I felt, based on the analysis, that the incidence on the motor vehicle VAT would be on the ordinary Ghanaian. And it is better that you exempt that and allow the policy to go. And that is why I deliberately zoomed in on that one," he reportedly said.
“If you introduce VAT on motor vehicles, the incidence will be on the trotro driver, on the taxi driver, on the Uber driver. So even if you are going to implement such a policy, the first thing you need to do is to exempt the ordinary person, the person who is running a taxi, the person who is running trotro, the person who, by the grace of God, has been able to buy a vehicle and needs to buy insurance. You don’t want to make it punitive so that such a person will not even buy the insurance at all," he added.
Watch the video below:
Reactions to Twene hailing Mahama's taxation reforms
Ghanaians on social media who came across Twene Jonas’s video thronged the comment section to share their views.
Below are a few of the reactions:
@leaveafricaalone said:
"Twene is finally giving us the difference between NPP and NDC.'
@prime.minister9054 also said:
"The truth will always defeat the lies, bro."
@salvation commented:
"We thank God Jonas is happy with NDC -Mahama, the fantastic president."
Source: UGC
Twene Jonas lauds Forson over cedi strength
In a related development, Twene Jonas praised Finance Minister Dr Cassiel Ato Forson for putting in place various policies that have led to the economy growing stronger and the cedi gaining against the US dollar.
He described Dr Ato Forson as the 'world’s best' finance minister, following the cedi’s sustained gains and amid falling inflation
Many who chanced on his video took to the comment section to share their views.
Proofreading by Samuel Gitonga, copy editor at YEN.com.gh.
Source: YEN.com.gh
