Just before the Christmas break, the Value Added Tax (VAT) Amendment Bill was enacted by Parliament.
This prompt action sets the stage for a more seamless transition for the country into the next fiscal year and demonstrates the government’s commitment to economic reforms. It is expected that the changes made to the VAT will have a significant impact on the nation’s revenue collection and budgetary policy.
The VAT Amendment Bill proposes changes to the insurance industry that include charging VAT on insurance premiums and VAT on imported stationery, erasers, and textbooks. Notably, in keeping with initiatives to address basic needs and advance accessibility to necessary hygiene items, the measure also zero-rates VAT on sanitary pads made domestically.
Three opposition National Democratic Congress (NDC) members of parliament were conspicuously absent from voting during the parliamentary session.
Among the MPs not present were Augustine Tawiah (Bia West), Muntaka Mubarak (Asawase), and James Gyakye Quayson (Assin North). One New Patriotic Party (NPP) MP from the majority side was also not present.