Ghana: More Than 30,000 Livelihoods Are on The Line Due To 5% Tax

Ghana: More Than 30,000 Livelihoods Are on The Line Due To 5% Tax. Thousands of workers may lose their jobs in Ghana due to a 5% tax on locally produced plastics.

According to the Ghana Plastic Manufacturers Association (GPMA), over 30,000 workers in Ghana’s plastic manufacturing sector may end up losing their jobs, if the Ministry of Finance goes through with the planned implementation of a 5% tax on locally manufactured plastics. It could also lead to production plants closing down.

The GPMA has condemned this tax, pointing out the adverse effects the implementation would have on the price of essential goods.

Ghana: More Than 30,000 Livelihoods Are on The Line Due To 5% Tax, More Perspectives

According to the President of the Ghana Plastics Manufacturers Association (GPMA) Ebo Botchwey, the timing is wrong, particularly at a time when businesses are already feeling the negative impact of the exchange rate.

The implementation should be postponed to a later time, he said.

Mr. Botchwey warned that the implementation of the 5% tax would trigger increased prices for essential products such as medicines, beverages, and sachet water, which depend on plastics for production and packaging.

The Ghana Plastic Manufacturers Association (GPMA) has issued an ultimatum to the government.

Ghanaian Plastic Producers Clamour Indefinite Suspension of 5% Tax

Producers of sachet and bottled water have also stated they would be forced to halt production for a week if the tax is implemented.

He continued that, the country has already been saddled with many taxes, and imposing more just shows how little the government cares for the success of businesses in the country.

Numerous companies are moving out of Ghana as a result of the high cost of operating a business, leading to the country losing ita competitiveness.

Speaking on the issue, President of the Association of Sachet and Packaged Water Producers, Magnus Nunnoo explained that the high cost of operation would force them to shut down their production plants for a week.

He asked that the implementation of the 5% excise tax on the factory price of all locally produced plastic products and packaging be suspended instantly and indefinitely.

He continued that stakeholders should be consulted before enforcing any excise tax on locally produced plastic products.

“It is unjust to impose such a tax on items like plastic chairs, tables, buckets, household wares, water tanks, PVC pipes, plastic crates, paint gallons, industrial containers, lubricant and engine oil containers, biscuit wrappers, combs, and rice sacks”, he said.

Mr. Nunnoo then called upon Vice President Dr Bawumia to intervene in the matter, as the enforcement of these consumer taxes would end up hurting the masses.

He added that they are giving the government, the Ministry of Finance a week to respond to their request or they will be forced to shut down production for a minimum of one week and, lay off over 30,000 workers.


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