Government has announced the removal of taxes it imposed on agricultural inputs and medical supplies including condoms earlier this year, with effect from 2014.
Taxes paid on imported items such as agricultural materials, outboard motors and medical supplies including condoms, shall no longer be operational from January, 2014.
Minister for Finance and Economic Planning, Seth Terkper announced this in Parliament, Friday November 19, 2013, while presenting government?s 2014 budget and financial statement to the House. He also announced that the National Stabilisation Levy shall also be removed by June 2014.
According to the Finance Minister, government preferred the more efficient and reliable Value Added Tax system of raising money to fund its programmes and projects.
Government last week increased the VAT rate by 2.5 percent. The Minority in Parliament boycotted the approval of the increment, arguing that government, supported by the Majority smuggled the increase into a Bil that was before the House and was at the final stage of approval.
The Minority MPs said the government delibrately avoided debate on the tax increase and have been mobilising support to resist the increase. President John Mahama has however assented to the Act.
Mr. Terkper said the imposition of the 2.5 increase in the VAT rate was necessary to support government?s infrastructure expansion project. He said the amount to be realised from the 2.5 increase will be dedicated solely to infrastructure projects.
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