[ 2014-11-20 ]

Budget 2015: Gov’t scraps taxes on pharmaceuticals, smart phones
Taxes on some locally-produced pharmaceutical
products and some of the raw materials used to
produce them will be removed, according to Finance
Minister Seth Terkper.

Government in July this year stated that it was
considering a re-assessment of the imposition of
the 17.5 percent Value Added Tax (VAT) on
locally-produced drugs.

This was followed by a written appeal by the
umbrella-body of drug manufacturers, the
Pharmaceutical Manufacturers Association of Ghana
(PMAG), to the Ministry of Finance and Economic
Planning and a subsequent meeting with the
President to discuss the impact of the revised VAT
law.

Drug producers currently pay VAT on 66 items out
of about 200 different materials used for
manufacturing drugs locally, and are later
reimbursed by the Ghana Revenue Authority (GRA).

However, producers have often complained about the
GRA’s lengthy bureaucratic procedures which
often cause undue delays in reimbursement of
manufacturers.

The pharmaceutical industry in the country is
under serious strain from cheap, imported
pharmaceutical products mainly from Asia. High
cost of credit, poor electricity supply, and
expensive imported raw materials are some of the
challenges bedevilling the sector.

Presenting the 2015 budget and economic statement
to Parliament, Wednesday, Terkper also revealed
that taxes on machetes and cutlasses would be
removed in 2015.

He added that Government would also scrap taxes on
all smart phones imported in 2015.

Terkper also stated that the Ghana infrastructure
fund will begin full operations in 2015 to support
infrastructural development.

The Ghana Export-Import Bank would also be created
to lead in the strategic positioning of Ghana as
an export-led economy, according to the Finance
minister.

Source - Starrfmonline

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