The Ghana Plastic Manufacturers Association (GPMA) has raised alarms over the country’s tax regime, warning that it is rapidly driving businesses to collapse.
The Association highlighted the existing 10% Environmental Excise Tax on selected plastic materials at entry ports, emphasizing that the newly proposed 5% Excise Tax would be “obnoxious and retrogressive” for the manufacturing sector.
The GPMA argued that Ghana’s tax regime is unparalleled globally, suggesting it is excessively burdensome.
The Association warned that this additional tax would significantly affect various industries dependent on plastic products, including food and beverage, retail, water, and pharmaceuticals, ultimately leading to higher consumer prices.
Mr. Ebow Botchwey, President of the Association, voiced these concerns during an appearance on The Citizen’s Show, hosted by Kwabena Bobie Ansah last week.
He stated that these taxes are crippling the sector, and many plastic company owners are afraid to express their frustrations publicly for fear of victimization.
He also revealed that a large number of these owners are foreigners.
Mr Botchwey underscored the significant contributions of the plastic industry to Ghana’s economy, noting that it provides direct employment to over 39,260 people and generates millions of jobs in plastic waste recycling and the sachet and bottled water industry.
Mr. Botchwey highlighted the industry’s substantial payments in import duties, electricity bills, and corporate taxes, and raised concerns about illegal sales of plastic raw materials by Free Zones Companies.
