The Ghana Plastic Manufacturers Association (GPMA) has issued a one-week ultimatum to the government, demanding the suspension of the newly introduced 5% Excise Tax on locally manufactured plastic products.
The Association warns of a potential industry-wide shutdown if their demands are not met an also over 30,000 workers in Ghana’s plastic manufacturing sector may face layoffs.
During a press conference in Accra today, Mr Ebbo Botwe, the President of the Association, emphasized that the tax would have an impact on various items such as plastic chairs and tables, data pipes, water tanks, ice chests, conduit pipes, electrical fittings, jerry cans, and other products.
That, he said, would create obstacles for the local manufacturing industry to effectively compete with imported goods.
“Let’s defer the implementation of this tax. The timing is not right, especially when businesses are already suffering from the effects of the exchange rate,” He said.
At a press conference, President of the GPMA Ebo Botwe criticized the Ghana Revenue Authority (GRA) for enforcing the tax without proper consultation or response from the Ministry of Finance. According to them, about 92 percent of industries and businesses rely heavily on plastic packaging and plastic products, and the tax would inevitably cause a widespread increase in consumer prices.
He criticized the Ghana Revenue Authority (GRA) for enforcing the tax without proper consultation or response from the Ministry of Finance.
They highlighted the economic strain this tax would impose on the economy if the Ministry of Finance proceeds with the planned implementation of a 5% tax on locally manufactured plastics.
“The impact of this tax will cascade through the economy, leading to higher costs for consumers and potential job losses,” he said.
Meanwhile, Sachet and bottled water producers have also indicated they would be compelled to stop production for one week and embark on nationwide demonstrations if the tax is enforced.
Ghana | Atinkaonline,com | Abigail Ahimah