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The government aims to encourage sustainable transportation and menstrual hygiene with strategic exemptions and zero ratings.
To promote the adoption of Electric Vehicles (EVs), import duties on EVs designated for public transportation will be waived for a substantial period of 8 years. This incentive according to the Finance Minister, extends to both completely knocked down and semi-knocked down EVs imported by registered EV assembly companies during the same timeframe.
Also, in a move to enhance menstrual hygiene and affordability, the Finance Minister announced the zero-rating of Value Added Tax (VAT) on all locally produced sanitary pads. This measure is expected to make these essential products more accessible to the public.
Additionally, the government plans to extend the zero rate of VAT on locally manufactured African prints for an additional two years and locally assembled vehicles for two more years. Import duty waivers for raw materials used in the local manufacture of sanitary pads are also part of the relief package.
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To further support key sectors, the government will grant import duty waivers for raw materials for the local manufacture of sanitary pads, agricultural machinery equipment, inputs, medical consumables, and raw materials for the pharmaceutical industry. A VAT flat rate of 5 percent will be introduced to replace the 15 percent standard VAT rate on all commercial properties, simplifying administration.
Addressing environmental concerns, the government will also review and expand the Environmental Excise Duty to cover plastic packaging and industrial and vehicle emissions, aligning fiscal policies with sustainability goals.
These measures reflect a concerted effort to stimulate economic growth, support local industries, and promote eco-friendly practices in Ghana.