In the recently presented 2024 Budget and Economic Statement to Parliament in Accra, the New Patriotic Party (NPP) administration aims to alleviate economic challenges for Ghanaians. During the announcement, Mr. Ofori-Atta highlighted several key measures to provide relief:
**1. VAT on African Prints:**
To support local industries, the zero rate of VAT on locally manufactured African prints will be extended for an additional two years.
**2. Electric Vehicles for Public Transportation:**
Import duties on electric vehicles for public transportation will be waived for a significant period of eight years.
**3. Incentives for Electric Vehicle Assembly:**
Registered electric vehicle (EV) assembly companies in Ghana will enjoy import duty waivers for semi-knocked down and completely knocked down EVs for an extended eight-year period.
**4. Locally Assembled Vehicles:**
The zero rate of VAT on locally assembled vehicles will be extended for two more years.
**5. Zero VAT on Sanitary Pads:**
To address health and hygiene concerns, sanitary pads produced locally will have a zero rate of VAT.
**6. Raw Materials for Sanitary Pads:**
Import duty waivers will be granted for raw materials used in the local manufacture of sanitary pads.
**7. Exemptions for Specific Imports:**
Import duties will be exempted for agricultural machinery, equipment, inputs, medical consumables, and raw materials for the pharmaceutical industry.
**8. VAT Flat Rate on Commercial Properties:**
A simplified approach will be introduced with a VAT flat rate of 5 percent, replacing the standard 15 percent VAT rate on all commercial properties.
In addition, Mr. Ofori-Atta revealed that import duties would also be exempted for semi-knocked down and completely knocked down electric vehicles brought into the country by registered EV assembly companies for the same eight-year period. These measures signify the government’s commitment to fostering economic growth and easing the financial burden on the citizens.