2024 budget: Finance Minister unveils tax relief bonanza; zero VAT on locally produced sanitary pads, others

Finance Minister, Ken Ofori-Atta, has made some positive remarks in the 2024 budget statement, introducing a range of tax reliefs aimed at boosting local industries, including the removal of VAT on locally produced sanitary pads.

Addressing Parliament on Wednesday, November 15, 2023 the Finance Minister highlighted the government's tax policy since 2017, emphasizing the need for fiscal sustainability to enhance the country's long-term competitiveness.

He reassured the House of the government's commitment to lower taxes for the industry, working collaboratively with the Ghana Revenue Authority (GRA) and the Mutual Prosperity Dialogue's standing committee.

The comprehensive list of tax reliefs announced in the 2024 budget is as follows;

1. Extension of zero VAT on locally manufactured African prints for two (2) more years;

2. Waiver of import duties on electric vehicles for public transportation for a period of 8 years;

3. Waiver of 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;

4. Extension of zero VAT on locally assembled vehicles for 2 more years;

5. Zero VAT on locally produced sanitary pads;

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

7. Granting exemptions on the importation of agricultural machinery equipment and inputs, as well as medical consumables and raw materials for the pharmaceutical industry;

8. Introduction of a VAT flat rate of 5 per cent to replace the 15 per cent standard VAT rate on all commercial properties, aiming to simplify administration.