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NewsIllegal plastic sales cause Ghana GHC264m annually - Ghana Plastic Manufacturers Association

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Illegal plastic sales cause Ghana GHC264m annually – Ghana Plastic Manufacturers Association

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The Ghana Plastic Manufacturers Association has made serious allegations against certain Free Zones Companies, accusing them of engaging in illegal practices that result in significant revenue losses for the government.

According to the association, out of the 166 plastic manufacturing companies in Ghana, approximately 12 are registered under the Free Zones Enterprise.

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These companies are allegedly importing plastic raw materials duty-free and then illegally selling them on the local market, thus avoiding import duties.

The association claims that this practice has cost the government approximately GH₵22 million per month, totaling about GH₵264 million annually.

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President of the Plastic Manufacturers Association, Ebbo Botwe, expressed frustration over the lack of response from the authorities in an interview with Citi News.

“One sad part of this tax is that in Ghana currently, we have about 166 plastic manufacturing companies and out of this, just about 12 of them are Free Zones Enterprise registered. Some of these 12 registered Free Zone Companies, are importing plastic raw materials and illegally selling them on the open local market, thereby causing the government to lose millions and millions in revenue, by way of avoiding payment of import duties – thus depriving the government of the needed revenue. Free Zone Companies are exempted from paying import duties.”

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“Eighteen months ago, we reported this situation to the Commissioner General of Ghana Revenue Authority, the Ministry of Finance, the Ministry of Trade & Industries and the Ghana Free Zones Authority but this illegal business continues.

“It is estimated that the government is losing approximately GHC 22.05 million per month or GHS 264.6 million annually through these illegal activities. This is a serious revenue leakage and we believe we have given enough information to the government to help stop this practice but instead, here we are saddled with yet another new tax.”

Meanwhile, the Ghana Free Zones Authority  (GFZA) in a press release said it has already initiated monitoring and spot checks of the production sites and is “in the process of producing its first report on the impact of the measures by the third quarter of the year.”

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