Ghanaian Plastic Producers Clamour Indefinite Suspension of 5% Tax

Ghanaian Plastic Producers Clamour Indefinite Suspension of 5% Tax. There have been clamours for the Ghanaian government to place an indefinite suspension on the 5% excise tax on ex-factory pricing on all plastic products made in the country.

Earlier this week, the Ghana Plastic Manufacturers’ Association called upon the government to put an indefinite hold on the application of this tax, stating that it would lead to a reduction in the competitiveness among local companies.

Ghanaian Plastic Producers Clamour Indefinite Suspension of 5% Tax: More Clarity

It was also mentioned that it could impair the living conditions of buyers of the product.

They clarified that the suspension should happen to allow for a broader stakeholder consultation on any future excise tax on locally manufactured plastic products.

According to Mr Ebbo Botwe, President of the Association, the essence of this is to facilitate a reduction in the number of companies departing to neighbouring countries and motivate local businesses to augment production and ensure economic growth.

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The Customs and Excise (Amendment) Act of 2013 (Act 863)

In the 2024 budget, the government disclosed the expansion of the Environmental Excise Duty to cover plastic packaging, noting that it had noticed some distortions in the implementation of the excise policy.

The former Customs and Excise (Amendment) Act of 2013 (Act 863) imposed a 5% tax on the importation of plastic products into Ghana and initiated the Plastic Waste Recycling Fund to secure the revenue.

The aim was to use the revenue collected to recycle plastic waste and make garbage bins and bags to deal with the nation’s plastic pollution issue.

While according to the 2024 budget, GHS2,416,217 was spent between Q1 and Q4 of 2023, no provision was made for allocated funds from 2024 to 2027.

According to Mr. Botwe, trying to reduce plastic waste pollution in the country, and levying taxes on local producers would not bring us any closer to a solution.

The association then urged the government to reduce various taxes to foster compliance, which would in turn grow tax revenue.


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