VAT on mosquito nets
--------------------
I would suggest that the Ghana Ministry of Health make a strong case
for making mosquito nets and insecticide (for net treatment) VAT ex-
empt. At present I think I am correct in saying that Ghana has no local
production of mosquito nets or netting so there is also an excellent
case for removing the additional 25% import duty which also applies to
nets.
In July 1998 the Tanzanian Government decided to exempt mosquito nets
from VAT which they are also introducing. This case was no doubt helped
by a strong lobby from the MOH, National Malaria Control Programme,
NGO's, the media, local manufacturers and suppliers. The Tanzanian ex-
ample is particularly interesting as until 1993 there was a high sales
tax on ready made nets, and none on netting. So the local textile pro-
ducers just made netting. However in 1993 locally produced ready made
nets were exempted from sales tax. This prompted one large manufacturer
to start making and selling nets, in a few years their commercial sales
have grown to 500,000 + per year. Now another firm has recently tooled
up and will soon be producing nets for the Tanzanian and East African
market at a similar rate. These nets are available throughout the coun-
try for between 5 - 7 US dollars and have a lot to do with the increas-
ing 'new tradition' of net use within the area.
The situation in Tanzania has not only encouraged the purchase and use
of nets but it has also encouraged textile manufacturers to invest
their own money in developing a thriving industry.
Yours faithfully
Catherine Reed,
Programme Coordinator
PATH Canada
1 Nicholas Street, Suite 1105
Ottawa, Ontario KlN 7B7, Canada
Tel: +1-613-241-3927 Ext. 328
Fax: +1-613-241-7988
mailto:path@synapse.net
http://www.synapse.net/~path/
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