Ghanaian plastic producers are threatening to close their doors in reaction to the government’s recent decision to tax plastic goods by 5%.
Concerns have been raised by this development over the wider effects on jobs and the environment, as well as possible economic consequences.
The levy is intended to reduce plastic pollution and raise extra money for environmental projects. It was introduced by the Ministry of Finance as part of the new fiscal policy.
Industry participants contend, however, that the legislation will negatively impact both their companies and the overall economy.
30,000 Ghanaians to lose their jobs
Ebo Botwe, the President of the Ghana Plastic Manufacturers Association, urged for renewed cooperation with all parties involved to stop the potential economic fallout from this planned production shutdown.
He said over 30,000 workers in the plastic manufacturing sector may lose their jobs.
He stated, “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. We have been burdened with numerous taxes, and imposing another one now shows a disregard for the growth of businesses.
“Many companies are relocating from Ghana due to the high cost of doing business, and we are losing our competitiveness. Most imports now avoid the Tema port, opting for the Eastern and Western corridors instead. What will be achieved by raising taxes and driving prices up?”
In early March 2024, Botwe said members of the plastic manufacturers started receiving calls from Ghana Revenue Authority (GRA) officers requesting them to start paying a five percent excise tax on all locally manufactured plastic products.
