15th November 2023 3:23:03 PM
2 mins readGovernment has failed to totally scrap the taxes on sanitary pads in its 2024 budget statement presented by Finance Minister, Ken Ofori-Atta today.
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According to the Finance Minister, this is because, in the short term, fiscal sustainability requires that the country improve its tax ratios significantly; otherwise, its long-term competitiveness will be eroded despite believing in lower taxes for industry.
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In the interim, government says it is considering some reliefs that have been prioritised for implementation.
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Among these reliefs is a zero-rate VAT (value-added tax) on locally produced sanitary pads.
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Also, the government is looking at granting import duty waivers for raw materials for the local manufacture of sanitary pads.
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This implies that the cost of local sanitary products will decline when implemented. However, imported sanitary pads will continue to see the current taxation measure.
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Sanitary products are currently enlisted in chapter 96 of the Harmonized System, and that attracts a 32.5% tax on imported sanitary pads, which comprises a 20% import duty and a 12.5% Value Added Tax
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The other relief measures are as follows:
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Extend zero rate of VAT on locally manufactured african prints for two (2) more years.
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Waive import duties on import of electric vehicles for public transportation for a period of 8 years.
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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;
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Extend zero rate of VAT on locally assembled vehicles for 2 more years;
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Grant exemptions on the importation of agricultural machinery equipment and inputs and medical consumables, raw materials for the pharmaceutical industry;
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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.
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