Business News of Wednesday, 15 November 2023

Source: www.ghanaweb.com

Tax exemptions on imported sanitary pads swerved in 2024 budget

Sanitary products Sanitary products

The call for the scrap of taxes on sanitary pads that are imported has become more profound even as the country currently faces a high cost of living.

Even before the height of the economic crisis, most young girls could not afford sanitary products, leaving them with no other option than to resort to unhygienic methods monthly when they menstruate.

It was therefore expected that the government would address these issues in the 2024 budget, however, this was missed.

Instead, the government gave a zero rate VAT on locally produced sanitary pads.

The government has also granted import duty waivers for raw materials for the local manufacture of sanitary pads.

There is currently an import tax of 20% and VAT of 15% on sanitary pads.

One pack of sanitary pads costs between GH¢20.00 and GH¢40.00.

Advocates for the “no taxes on sanitary products” have argued that GH¢20 is higher than the current national minimum wage of GH¢14.88.

The Government of Ghana, under the Harmonized System Code 9619001000, classifies sanitary pads as ‘Miscellaneous Manufactured Articles’ which subjects them to a myriad of taxes including: 20% import duty; 15% Import VAT, and other import and statutory levies.

Sanitary products are currently enlisted in chapter 96 of the Harmonized System, and that attracts a 32.5% tax on imported sanitary pads, which comprises a 20% import duty and a 12.5% Value Added Tax.

SSD/NOQ

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