Ghana Electrical Vehicle Tariffs
In early November, as a part of its proposed 2024 budget, the Ghanaian Finance Ministry announced that it would waive import duties on electric vehicles for public transportation for a period of eight years. The government is planning to hold stakeholder consultations at the start of 2024 to define the scope of “public transportation” and how to implement the measure. CS Ghana’s current understanding is that the intent of the new measure is to extend the duty exemption beyond just public buses and passenger vans (the latter are known locally as “tro-tros,” which are generally old and a major source of CO2 emissions). It is also to be applied to passenger sedans used by taxi drivers. It does not apply to the importation of fully built electric cars for personal use. Whether the measure also exempts parts for EVs and whether it includes Internal Combustion Engine (ICE)-to-EV conversion kits is also a point of discussion.
It is unclear at present if the duty waiver extends to imports of used hybrid and EVs. Another point of discussion is the possibility of a wider scope that would extend to vehicles used for public utilities.
Ghana’s current tariffs on new and used hybrids and EVs for imports from Most Favored Nation trading partners, which includes the United States, are as follows:
• Tariff line 8703801900, motor cars or other motor vehicles principally designed for the transport of persons (other than those of 87.02) has a tariff of 20%;
• Tariff line 8702401190, motor vehicles for the transportation of 10 or more persons has a tariff rate of 10%;
• Tariff line 87024012 motor vehicles for the transportation of 23 to 30 persons, including the driver has a tariff rate of 10%; and
• Tariff line 87029013, motor vehicles for the transportation of more than 30 persons, including the driver has a tariff rate of 10%.
• Tariffs on knock-down kits are already zero in Ghana.
A key part of the implementation of the proposed measure would be for the Ghana Revenue Authority (GRA) at customs to verify at the time of importation that the end user would register the vehicle with the Ghana Driver Vehicle and Licensing Authority (DVLA) as a vehicle for use in public transportation.
The waiver of import duties is expected to accelerate the adoption of EVs in Ghana because it will reduce the upfront cost of purchasing an EV versus the cost of purchasing an ICE vehicle.
Opportunities for U.S. Companies: The measure creates opportunities for U.S. exporters of finished EV buses and sedans. It can help reduce the costs of importing vehicles for “ride hailing” service providers. The measure should also create more critical mass for EV charging infrastructure and supporting ICT and services.
To share specific stakeholder insights into this proposed measure and for more information about Ghana’s automotive sector, please contact CS Ghana at Office.Accra@trade.gov or Telephone +233(0)30-274-1870. Please see our Country Commercial Guide and our wide range of market intelligence reports.