Local manufacturers in the nation have protested against a 5% excise charge on plastic goods made there.
They claim that if the tax is not put on hold, it will negatively impact the business community and make things worse for average consumers.
A 10% environmental excise tax on specific plastic items was imposed at entry ports by the government in an effort to address the issue of plastic waste.
Soon after, the Ghana Plastic Manufacturers Association protested that there was improper consultation before imposing a 5% excise tax on locally made plastic products.
At a press conference in Accra, Ebbo Botwe, the President of the Plastic Manufacturing Association, stated that the tax in its current form will be harsh on the average person and lower the competitiveness of local manufacturers.
The local manufacturers also pointed out that all attempts to obtain clarifications from the Ghana Revenue Authority (GRA) have been ineffective.
He demanded that the administration immediately halt the tax’s implementation.
He stated:
“Passing on the increased costs/5% Excise Tax to consumers would make locally manufactured products more expensive compared to those imported. Already, we are in serious competition with China in terms of plastic product imports.
“In an era where the Government is trying to make Ghanaian businesses more competitive so that they take advantage of the opportunities under the AfCFTA arrangements, the implementation of this Tax will defeat the purpose of AfCFTA.”
“After a deeper analysis and a wider consultation with our partners, namely, the National Association of Sachet & Packaged Water Producers, the Ghana Union of Traders Association, the Association of Ghana Industries and the Food & Beverage Association of Ghana, we wish to state that implementation of the 5% Excise Tax on EX-Factory price of ALL locally manufactured plastic products and packaging be suspended immediately and indefinitely.”
“We also want a better, deeper and broad-based stakeholder consultation done on the idea of any Excise Tax on locally manufactured plastic products.“
Dr. Joseph Obeng, President of the Ghana Union of Traders Association (GUTA), expressed his displeasure with the state of the business climate in Ghana.
