The Budget Statement and Economic Policy for the 2024 fiscal year has revealed that all locally produced sanitary pads would now be zero-rated as part of government’s efforts to promote menstrual hygiene and affordability.
This follows calls by a section of the public including interested groups who called on the government to scrap taxes on sanitary pads to make it affordable for many adolescent girls who cannot afford.
According to the proponents, that was the surest way to ensure menstrual hygiene and to some extent prevent teenage pregnancy.
Presenting the Budget in Parliament Wednesday, November 15, 2023, Finance Minister Ken Ofori-Atta noted tax has been waved for the local companies that manufactured the pads.
The government’s move, many believe, was in connection with the Association of Ghana Industries’ (AGI) call for the taxes not to be scrapped on the imported pads to safeguard the domestic manufactures.
“Mr. Speaker, further to the above, the following reliefs have been prioritised for implementation:
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 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 8 years;
iv. Extend zero rate of VAT on locally assembled vehicles for 2 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 and medical consumables, raw materials for the pharmaceutical industry;
viii. 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.
In its bid to tackle “the negative externalities of plastic waste and pollution”, Mr. Ofori-Atta told the House that “the government will review and expand the Environmental Excise Duty to cover plastic packaging and industrial and vehicle emissions.”
READ ALSO: 2024 budget must cater for textbooks in basic schools – Kofi Asare
