The Ghana Plastic Manufacturers Association (GPMA) has raised alarm over the potential impact of a planned 5% excise tax on locally manufactured plastics, warning that over 30,000 workers in the sector could face layoffs if the tax is implemented.
President of the GPMA, Ebo Botchwey, expressed grave concerns about the detrimental effects of the proposed tax, emphasizing that it could lead to the shutdown of production plants and significantly increase prices of essential products such as medicines, beverages, and sachet water.
Mr Botchwey argued that the timing of the tax implementation is unfavorable, particularly amid economic challenges exacerbated by exchange rate fluctuations.
He criticized the government for imposing additional taxes without adequate consultation with industry stakeholders, noting that many businesses are already struggling to cope with existing tax burdens.
“We have been burdened with numerous taxes, and imposing another one now shows a disregard for the growth of businesses,” Botchwey lamented. He highlighted the trend of companies relocating from Ghana due to high operating costs, which threatens the country’s competitiveness in the region.
The Association of Sachet and Packaged Water Producers also expressed solidarity with GPMA’s stance, warning that they would be forced to halt production for a week if the tax is enforced.
Magnus Nunnoo, President of the association, emphasized the impracticality of packaging water in alternative materials like paper, underscoring the essential role of plastics in their operations.
Mr Nunnoo called for immediate suspension of the tax and urged comprehensive stakeholder consultations before any such measures are implemented. He appealed to Vice President Dr. Bawumia to intervene, highlighting the potential hardship the tax could impose on consumers, especially the economically vulnerable segments of society.
President of the Ghana Union Traders Association (GUTA), Joseph Obeng, echoed these concerns, warning of severe supply chain disruptions if plastic manufacturers cease operations.
He emphasized the critical role of plastics in packaging materials, essential for products like bottled and sachet water.
“We cannot package water in paper; we still have to use plastic materials,” Obeng stressed, highlighting the domino effect that a shutdown of plastic manufacturing could have on various sectors reliant on plastic packaging.
The stakeholders have given the Ministry of Finance a one-week ultimatum to respond to their concerns, threatening collective action if their demands are not met. They called on the government to halt harassment of plastic manufacturers and prioritize policies that support economic growth and job creation.