2024 Budget: Finance Minister announce 8 tax reliefs for businesses, citizenry
Minister for Finance, Ken Ofori-Atta, in the presentation of the 2024 budget statement has announced eight tax reliefs for businesses and the citizenry at large.
The Minister attributed the tax reliefs to ongoing commitment by government to provide substantial relief to the private sector amidst expenditure pressures.
The tax reliefs as outlined by Mr. Ofori-Atta cover a diverse range of items, showcasing a comprehensive approach to addressing economic challenges.
The unveiling of these measures underscores the government’s dedication to creating a supportive economic environment, particularly for the private sector, which has been facing various expenditure pressures.
“Mr. Speaker, our approach to tax policy since 2017 was to give significant relief to the private sector until expenditure pressures from 2020 required a more aggressive approach. It is important to note that in the short-term, fiscal sustainability requires that we improve our tax ratios significantly otherwise, our long-term competitiveness will be eroded. As we all know, our country’s 13 percent tax-to-GDP ratio is far below our peers. Our target is 18-20% and we are on course.
“In that regard, it is difficult to implement all the structural reforms and tax reliefs needed to immediately lower and/or eliminate certain tax handles. However, I assure this August House, that 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,” he noted.
Below is the list of the tax reliefs announced by the Finance Minister:
- 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.
