Ghana Removes Taxes on Locally Produced Sanitary Pads, Zero Import Duties on Electric Vehicle

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In a significant move to alleviate economic challenges for Ghanaians, the Minister of Finance, Ken Ofori-Atta, announced the removal of taxes on locally produced sanitary pads during the budget presentation. This decision aligns with the New Patriotic Party (NPP) administration's commitment to implementing fiscal measures that benefit the citizens.

As part of the outlined reliefs, Ofori-Atta highlighted the zero-rating of Value Added Tax (VAT) on locally produced sanitary pads. This measure aims to fulfill the longstanding advocacy of the Association of Ghana Industry (AGI) and other stakeholders who have consistently called for the elimination of taxes on sanitary pads.

In addition to the removal of taxes on sanitary pads, the government has introduced various other tax reliefs to address economic challenges. These include the extension of a zero rate of VAT on locally manufactured African prints for an additional two years. Furthermore, import duties on electric vehicles for public transportation have been waived for eight years, along with import duties on semi-knocked down and completely knocked down electric vehicles imported by registered EV assembly companies in Ghana.

In a report by Graphic Online, Ghana, to support the automotive industry, the zero rate of VAT on locally assembled vehicles will be extended for two more years. The government is also granting exemptions on the importation of agricultural machinery equipment, medical consumables, and raw materials for the pharmaceutical industry.

In a bid to simplify administration, a VAT flat rate of 5 percent will be introduced to replace the current 15 percent standard VAT rate on all commercial properties. These comprehensive measures demonstrate the government's commitment to providing economic relief and fostering growth across various sectors.

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