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2024 Budget: Government to implement 8 tax relief measures

Government to inject GHC4 billion into NIB
Finance Minister, ken Ofori-Atta.

By Seli Baisie

Finance Minister Ken Ofori-Atta has disclosed that government is working aggressively with the GRA to implement 8 tax relief measures to lighten the tax burden on businesses and the citizenry.

He made this announcement during the presentation of the 2024 Budget Statement in Parliament.

Minister Ofori-Atta emphasized the government’s commitment to lowering taxes for industries and citizens alike, acknowledging the challenges posed by immediate structural reforms.

He assured the parliamentary body of the administration’s dedication to this cause, stating, “We have heard, we believe in lower taxes for industry, and we are working at this aggressively with the GRA and to be cemented with the standing committee of the Mutual Prosperity Dialogue.”

The Minister describes this move as an efforts to give significant relief to the private sector until expenditure pressures.

The measures span a diverse range of sectors, from locally manufactured sanitary pads to electric vehicles.

Here are 8 tax reliefs prioritised for implementation;

  • Extend zero rate of VAT on locally manufactured African prints for two (2) more years;
  • Waive import duties on import of electric vehicles for public transportation for a period of 8 years;
  • 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;
  • Extend zero rate of VAT on locally assembled vehicles for 2 more years;
  • Zero rate VAT on locally produced sanitary pads;
  • Grant import duty waivers for raw materials for the local manufacture of sanitary pads;
  • Grant exemptions on the importation of agricultural machinery equipment and inputs and medical consumables, raw materials for the pharmaceutical industry;
  • A VAT flat rate of 5 percent to replace the 15 percent standard VAT rate on all commercial properties will be introduced to simplify administration.

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