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BusinessGovt takes steps towards affordability and local production of sanitary pads

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Govt takes steps towards affordability and local production of sanitary pads

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The taxation of sanitary pads emerged as a prominent topic of discussion ahead of the 2024 budget reading in Parliament by Finance Minister Ken Ofori-Atta.

Public reactions to the government’s proposed solution, as presented by Minister Ofori-Atta, varied. While some Ghanaians expressed dissatisfaction, others saw it as a step toward providing relief for young girls and women during menstruation.

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During the 5th edition of the Deloitte Economic Dialogue in Accra on November 22, 2023, Deputy Minister of Finance Abena Osei-Asare revealed that Fay Enterprise and Sunda Ghana were identified as local companies poised to manufacture sanitary pads on a large scale for young girls and women.

Sunda Ghana, with the potential support from the government, can produce 900 million sanitary pads, while Fay Enterprise has the capacity to produce 600 million sanitary pads annually. Currently, Sunda Ghana employs 900 people, while Fay Enterprise has approximately 40 employees.

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The Deputy Minister emphasized that removing import duties and implementing a Zero Value Added Tax (VAT) for these companies would enhance their production capacity and contribute to creating more job opportunities for the sizable population of unemployed youth in the country.

Abena Osei-Asare said, “Government engaged the two companies that produce sanitary pads in this country; they were Fay Enterprise and Sunda Ghana and government sat with them and we looked at their numbers and clearly it confirmed that given that support, they can be able to produce the needed capacity for this country and so government decided that based on the numbers that have shown us, Sunda, given the support will be able to produce 900 million pieces a year.”

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“For Fay Enterprise, given the support will be able to produce about 60 million pieces a year. Sunda employs close to 900 people, Fay employs close to 40 people and so given that support, they can increase employment as well,” the Deputy Minister of Finance stated.

The government waived import duties on raw materials used in the local production of sanitary pads and offered a zero-rate VAT on pads made locally.

Currently, sanitary pads are subject to a 15% VAT and a 20% import tax.

Sanitary pads range in price from GH¢20.00 to GH¢40.00 per pack.

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