The government has introduced a number of tax reliefs to support local businesses to boost the economy.
The decision to address tax issues in the 2024 budget stems from the numerous calls by groups and individuals to waive taxes imposed on Ghanaian businesses.
Prominent among these are the Ghana Union of Traders Associations (GUTA) and car dealers, who have constantly complained about high import duties, which they said were eroding their profits, plunging their businesses into losses.
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While presenting the 2024 budget statement on the floor of Parliament on November 15, 2023, Mr Ofori-Atta stated eight key areas expected to witness tax adjustments in the coming year.
Below are the government’s actions on eight tax areas:
i. Extend zero rate of VAT on locally manufactured African prints for two (2) more years.
ii. Waive import duties on the import of electric vehicles for public transportation for a period of 8 years.
iii. 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.
iv. Extend zero rate of VAT on locally assembled vehicles for two more years.
v. Zero rate VAT on locally produced sanitary pads.
vi. Grant import duty waivers for raw materials for the local manufacture of sanitary pads.
vii. Grant exemptions on the importation of agricultural machinery equipment and inputs; medical consumables; and raw materials for the pharmaceutical industry.
viii. A flat VAT rate of 5 per cent to replace the 15 per cent standard VAT rate on all commercial properties will be introduced to simplify administration.