Stop implementation of 5% plastic tax – GUTA to gov’t

The Ghana Union of Traders Association has added its voice to the concerns of the Ghana Plastic Manufacturers Association (GPMA) on the implementation of the 5% excise tax on plastics, demanding its cancellation.

In a statement on Tuesday, July 3, 2024, GUTA urged the immediate withdrawal of the tax to save manufacturing companies.

GUTA’s call comes after the plastic manufacturers held a press conference on May 28 calling on the Ghana Revenue Authority and Ministry of Finance to suspend the implementation of the tax while initiating consultations with stakeholders.

The umbrella body for traders noted that it will be insensitive on the part of the government to implement this tax at a time when several economic factors have become unfavourable to businesses.

“We do not want to believe that the government is being insensitive to the plights of the business community and Ghanaians as well by imposing such a tax on plastic manufacturers in the country, especially at this time of instability of the local currency, coupled with increasing utility tariffs and other numerous economic conditions the business community is grappling with.”

The association added that the implementation of the tax will defeat the government’s own quest for an industrialised economy, which includes reducing imports and encouraging local production.

“What economic sense does it make at this time when the government is said to be driving its industrialization agenda, calling for the need for import substitution, and at the same time imposing such an obnoxious tax on local manufacturing companies to collapse businesses?”.

“The business community can no longer accept any additional layer of cost to doing business in the country, so we appeal to the government, as a matter of urgency, to stop the implementation of the 5% excise tax to alleviate hardships in the country,” the statement added.

Meanwhile, the Ghana Plastic Manufacturers Association is fixing to hold a demonstration on Wednesday, July 10, in Accra to press home their demand for a cancellation of the tax.