Tax benefits of manufacturing ceramics using local and foreign materials over importing finished ceramics include:

1. Locational tax incentive: Manufacturing entities located outside Accra and Tema receive tax rebates.
   • Accra/Tema: 25%
   • Regional Capitals: 18.75%
   • Other areas: 12.50%
2. Fresh Graduate Incentive: Manufacturing companies can receive additional tax deductions based on employing fresh graduates.
   • Up to 1% of fresh graduates in the total workforce: 10% deduction on wages and salaries paid to fresh graduates.
   • Between 1% and 5% of fresh graduates: 30% deduction.
   • More than 5%: 50% deduction.
3. Carry-over of losses: Manufacturing companies are allowed to carry forward tax losses for up to 5 years, reducing their tax burden in future profitable years.
4. Customs Rebates: Manufacturers can register with Customs to receive duty rebates on imported raw materials used in production.
5. Zero-rated exports: Manufacturing entities that export their products benefit from zero-rated VAT, making their exports more competitive internationally.
6. No capital restrictions for foreign investors: Manufacturing in Ghana has no limitations on capital requirements for foreigners, unlike importation businesses.
7. Claimable Input VAT: Manufacturers are eligible to claim back input VAT on raw materials used in production, enhancing cash flow.

(Any 5 points @ 2 marks each = 10 marks)