Government has resolved to remove import duties on smartphones as part of measures to bridge the digital divide in the country, the Minister of Finance, Seth Terkper has announced.
Dealers in this business had called on government to reverse the 20% percent import tax it placed on mobile phone handsets .
In October some importers of mobile phones and accessories presented a petition to the Finance Ministry, citing the negative impact the taxes were having on their business.
[contextly_sidebar id=”PjUjxBFbm9Z7kOZ7hXM8a7cyD3s4oDIw”]They argued that the 20 percent tax is contributing to the increasing cases of tax evasion and smuggling of handsets into the country.
Presenting the 2014 budget to Parliament on Wednesday, the Minister said : “Mobile phone penetration is high in Ghana. However smartphones form only 15% of this penetration. Communication is shifting from voice to data and mobile data is projected to grow 6.3 times between 2013 and 2018. It is being proposed that in order to increase smart phone penetration, and in line with Government’s policy of bridging the digital divide within the country, import duties on smartphones will be removed.”
The Minister also revealed that government will also remove import duty and VAT on inputs for the production of machetes , exercise books and textbooks.
The decision, according to him, will benefit the printing industry.
Support to Local Industries
Mr. Terkper said government will remove Value Added Tax(VAT) on locally produced pharmaceuticals and other raw material as part of its policy to support local industries.
“In 2015 government proposes to remove VAT on specified locally produced pharmaceuticals and some of the raw materials used for the production of these pharmaceuticals”
The Minister said “the exemption policy will be based on VAT on a select list of special essential
medicines not manufactured in Ghana and approved by the Minister of Health.”
This, he said “will ensure neutrality and reduce the cost of pharmaceuticals sold in Ghana and make them more affordable to Ghanaians.”
This is not the first time government has removed VAT placed on goods and services.
Government, in the 2014 Budget removed import duties and VAT on raw materials used for locally produced exercise and text books under the supervision of Ministry of Education and HIV/AIDS drugs under the supervision of the Ministry of Health.
By: Marian Efe Ansah/citifmonline.com/Ghana