Plastic Manufacturers Threaten To Shut Down Over New 5% Tax, Appeal To Bawumia To Intervene

Plastic Manufacturers Threaten To Shut Down Over New 5% Tax, Appeal To Bawumia To Intervene

  • Plastic manufacturers have given the government up to next week to suspend the new 5% tax on locally produced plastics
  • The manufacturers are prepared to shut down operations for seven days in protest if their demands are not met
  • The aggrieved manufacturers have also called in Vice President Mahamudu Bawumia to intervene in the matter

The Ghana Plastic Manufacturers Association has given the government up to next week to suspend the new 5% tax on locally produced plastics.

The association employs over 30,000 workers and has said it is prepared to shut down operations for seven days in protest if its demands are not met.

Plastic Manufacturers Threaten To Shut Down Over New 5% Tax
Vice President Mahamudu Bawumia
Source: Getty Images

There are also concerns that the revenue from the tax is not being allocated for plastic waste management.

Speaking to the press, the President of the Ghana Plastic Manufacturers Association, Ebbo Botwe, urged the government to consult further on the tax and reconsider its position.

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He also called on Vice President Mahamudu Bawumia to intervene in the matter amid claims the Ghana Revenue Authority is harassing its members.

“…we shall have no option but for all plastic manufacturers to shut down production for at least one week and of course, we’ll send home over 30,000 workers.”

The group maintains that not all plastics are single-use and cannot be treated as environmental hazards.

The President of the Ghana Union of Traders’ Association, Dr Joseph Obeng, impressed on finding innovative ways to meet its tax obligation rather than burdening local industries.

The government has been trying to increase revenue sources amid the economic crisis and support from the IMF.

Earlier in the year, some business groups and NGOs voiced their opposition to the emissions levy.

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For example, the Ghana Union of Traders Association said the emission levy would contribute to double taxation.

The government has already backed away from implementing the unpopular 15% VAT on electricity purchases.

The tax sparked agitation from some unions who threatened nationwide protests.

Parliament passes new revenue bills

In April 2023, YEN.com.gh reported that Parliament passed three major revenue bills to improve Ghana's economy.

The new bills were the Growth and Sustainability Levy Bill of 2022, the Excise Duty Amendment Bill of 2022 and the Income Tax (Amendment) Bill of 2022.

Parliament, however, did not pass these bills unanimously because of stiff opposition from the Minority.

Proofread by Berlinda Entsie, journalist and copy editor at YEN.com.gh

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Source: YEN.com.gh

Authors:
Delali Adogla-Bessa avatar

Delali Adogla-Bessa (Current Affairs Editor) Delali Adogla-Bessa is a Current Affairs Editor with YEN.com.gh. Delali previously worked as a freelance journalist in Ghana and has over seven years of experience in media, primarily with Citi FM, Equal Times, Ubuntu Times. Delali also volunteers with the Ghana Institute of Language Literacy and Bible Translation, where he documents efforts to preserve local languages. He graduated from the University of Ghana in 2014 with a BA in Information Studies. Email: delali.adogla-bessa@yen.com.gh.