Plastic manufacturers threaten production halt over new 5% excise tax

Consumers across the country may soon face a reduction in the availability of essential commodities packaged in plastic, including bottled and sachet water.

This potential shortage comes as the Ghana Plastic Manufacturers Association (GPMA), representing local industry players, has issued a stern ultimatum to the government, demanding the immediate suspension of a newly imposed 5% excise tax on locally produced plastic products.

The GPMA has warned that if their demands are not met, manufacturers are prepared to shut down production for seven days to voice their discontent.

Speaking at a press conference, the President of the Ghana Plastic Manufacturers Association, Ebbo Botwe, emphasized the need for the government to reconsider its position and called for renewed engagement with all stakeholders to prevent the potential economic fallout from this planned production shutdown.

“We are appealing to the Vice President, Dr. Mahamudu Bawumia, to intervene in this matter because the effect of this consumer tax will really affect the masses. The common man and woman will suffer extreme hardship,” Botwe stated.

He concluded by issuing a direct warning: “We ask the GRA to stop the harassment of plastic manufacturers, and we give the Ministry of Finance one week to respond to our request. If not, all plastic manufacturers will shut down production for at least one week, and we’ll have no choice but to send home over 30,000 workers.”

Dr. Joseph Obeng, President of the Ghana Union of Traders’ Association (GUTA), also spoke out against the new tax, urging the government to find innovative ways to meet its tax obligations without burdening local industries.

"The government is being insensitive to the business community. Let’s defer the implementation of the excise tax. The timing is not right, and it’s not fair when businesses are already suffering from the effects of exchange rates,” Obeng argued.

“This is not the time to impose another tax when so many taxes have already been imposed on us. Are we saying we do not care about the state of businesses?,” the GUTA president quizzed.

NAY/MA

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