May 19, 2024

The Eye Of Africa

Sanitary pads produced locally will have zero VAT – Ken Ofori Atta

2 min read

 

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.

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