Finance Minister Ken Ofori-Atta, during the 2024 budget presentation in Parliament, announced a series of tax reliefs and reforms aimed at supporting specific sectors and promoting sustainability.
In a significant move towards environmental consciousness, the government will waive import duties on electric vehicles for public transportation for eight years. Additionally, import duties on semi-knocked down and completely knocked down electric vehicles by registered EV assembly companies in Ghana will also be waived for the same period.
To further encourage the local automotive industry, the zero rate of VAT on locally assembled vehicles will be extended for two more years.
Minister Ofori-Atta acknowledged the importance of tax policy in supporting the private sector, emphasizing the government’s commitment to providing relief.
However, he highlighted the need for a balanced approach, considering fiscal sustainability in the short term.
He reassured the House that the government is actively working to lower taxes for industries, with ongoing collaboration with the Ghana Revenue Authority (GRA) and the Mutual Prosperity Dialogue standing committee.
Several specific tax reliefs were outlined, including an extension of the zero rate of VAT on locally manufactured African prints for two more years and zero rate VAT on locally produced sanitary pads. Import duty waivers for raw materials for the local manufacture of sanitary pads were also announced, along with exemptions on the importation of agricultural machinery equipment, inputs, medical consumables, and raw materials for the pharmaceutical industry.
A notable reform involves the introduction of a VAT flat rate of 5 percent to replace the 15 percent standard VAT rate on all commercial properties, simplifying administration. To address plastic waste and pollution, the government will review and expand the Environmental Excise Duty to cover plastic packaging, industrial emissions, and vehicle emissions.
In an effort to align with current economic realities, the Stamp Duty Act of 2005 will undergo a review in 2024. The bands subject to ad valorem taxes will be expanded, and specific rates will be reviewed upwards. Additionally, a simplified tax return will be introduced to promote voluntary compliance, particularly for individuals in the informal sector, making it easier for taxpayers to fulfill their obligations.
Minister Ofori-Atta concluded by expressing the government’s dedication to supporting various sectors through targeted tax measures, ensuring a balanced approach to foster economic growth and sustainability.
Source:Mybrytfmonline.com/Obed Ansah
