As part of measures to curb the public outcry on taxes on consumables and thereby make the private sector competitive, the government has announced tax reliefs on selected commodities, including sanitary pads, local prints, and others.
Presenting the 2024 budget in Parliament House in Accra, Ken Ofori-Atta said that the objective of the government has also been to provide significant relief to the private sector.
In this regard, Ofori-Atta disclosed that the state has prioritized to “grant import duty waivers for raw materials for the local manufacture of sanitary pads.”
Apart from the above, the finance minister revealed that grant exemptions on the importation of agricultural machinery equipment and inputs, medical consumables, and raw materials for the pharmaceutical industry.
In an attempt to ease the value-added tax (VAT) on some sectors of the economy, Ken indicated that the government has reduced the VAT flat rate on all commercial properties.
He said, “A VAT flat rate of 5 percent to replace the 15 percent standard VAT rate on all commercial properties will be introduced to simplify administration.
On locally manufactured prints, which are struggling to be competitive, he indicated that the government has extended the zero rate of VAT on locally manufactured African prints for two (2) more years, adding “waive import duties on the import of electric vehicles for public transportation for a period of 8 years.”
In the presentation, which appeared to be climate mitigation friendly, Ofori-Atta indicated: “Waive import duties on semi-knocked down and completely knocked down electric vehicles imported by registered EV assembly companies in Ghana for a period of 8 years.”
On the competitiveness of Ghana’s automobile industry, the finance minister indicated that the government has prioritized an extended zero rate of VAT on locally assembled vehicles for two more years.
