From Taxes On African Prints, Sanitary Pads…8 Tax Reliefs In 2024 Budget | Economy

Finance Minister Ken Ofori-Atta has announced tax reliefs on locally manufactured products including sanitary pads.

Presenting the 2024 budget statement in Parliament on Wednesday, he said “Mr. Speaker, our approach to tax policy since 2017 was to give significant relief to the private sector until expenditure pressures from 2020 required a more aggressive approach. It is important to note that in the short-term, fiscal sustainability requires that we improve our tax ratios significantly otherwise, our long-term competitiveness will be eroded”

However, “As we all know, our country’s 13 per cent tax-to-GDP ratio is far below our peers. Our target is 18-20% and we are on course”.

“In that regard, it is difficult to implement all the structural reforms and tax reliefs needed to immediately lower and/or eliminate certain tax handles. However, I assure this august House, that we have heard, we believe in lower taxes for industry, and we are working at this aggressively with the GRA and to be cemented with the standing committee of the Mutual Prosperity Dialogue”, he said.

Find the full list below:

 i. Extend zero rate of VAT on locally manufactured african prints for two (2) more years;

ii. Waive import duties on import of electric vehicles for public transportation for a period of 8 years;

iii. 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;

iv. Extend zero rate of VAT on locally assembled vehicles for 2 more years;

v. Zero rate VAT on locally produced sanitary pads;

vi. Grant import duty waivers for raw materials for the local manufacture of sanitary pads;

vii. Grant exemptions on the importation of agricultural machinery equipment and inputs and medical consumables, raw materials for the pharmaceutical industry;

viii. A VAT flat rate of 5 per cent to replace the 15 per cent standard VAT rate on all commercial properties will be introduced to simplify administration.