In a move that underscores the growing tension between Ghana’s plastic manufacturers and the government, members of the Ghana Plastic Manufacturers Association (GPMA) are threatening to halt production for a week.

This drastic measure is in response to the government’s failure to engage in extensive consultation regarding the implementation of a five percent excise tax on locally manufactured plastic products. The GPMA claimed that since April 2024, the Ministry of Finance has not responded to their request for a meeting to discuss the new tax.

The Association raised concerns that the tax, if implemented without proper consultation, could lead to significant job losses, with over 30,000 workers potentially facing temporary layoffs due to the industrial action.

In a press briefing, Mr. Ebbo Botwe, President of the GPMA, called for the immediate and indefinite suspension of the tax on the ex-factory price of all locally manufactured plastic products.

“At this stage, we appeal to the Vice-President, Dr. Bawumia, to intervene in this matter because the effect of the consumer tax will really affect the masses. The common man, the common woman will suffer extreme hardship.”
Mr. Ebbo Botwe, President of the GPMA

Mr. Botwe described the tax as “obnoxious and retrogressive” for the manufacturing sector. He warned that its implementation would have a ripple effect, leading to increased prices for a wide range of products that are essential to daily life.

“If this new tax is implemented in its current form, it will bring a cascading high-rise effect on prices of products that affect our everyday lives because plastics and plastic packaging form about 98 percent of our daily basic needs.”
Mr. Ebbo Botwe, President of the GPMA

Further compounding the issue is the unstable currency and higher tax regime in Ghana, which has already prompted some plastic companies to relocate to the neighboring Ivory Coast, from where they export finished products back to Ghana.

This trend, Mr. Botwe warned, could worsen if the tax is implemented, driving more manufacturers out of the country and exacerbating local economic instability.

Call to the Ghana Revenue Authority

In addition to the immediate suspension of the tax, the Association also called on the Ghana Revenue Authority (GRA) to cease what they described as harassment of plastic manufacturers. The GRA has been issuing demand notices and threats to manufacturers, urging them to start filing for the excise tax from June 21, 2024. This approach, the GPMA argued, is counterproductive and creates an environment of fear and uncertainty among manufacturers.

The GPMA’s president also highlighted the dependency of many industries on plastic packaging. “Let me remind you that over 92 percent of industries and businesses in Ghana depend on the Ghana Plastic Manufacturers for all their plastic packaging needs,” he added.

The press briefing was attended by representatives from various associations who echoed the concerns raised by the GPMA. These included the Ghana Union of Traders Association (GUTA), the Food and Beverage Association of Ghana, the Plastic Sellers Association of Ghana, and the Association of Sachet and Packaged Water Producers.

The presence of these groups underscored the widespread opposition to the new tax and the broad consensus on the need for the government to engage in meaningful dialogue with stakeholders.

The GPMA’s stance reflects a broader frustration within the manufacturing sector in Ghana, where businesses feel increasingly burdened by taxes and regulatory challenges. The Association’s call for extensive consultation before the implementation of the tax highlights the need for a more collaborative approach to policy-making, where the voices of those directly affected are heard and considered.

The Ghana Plastic Manufacturers Association’s threat to halt production signals a critical juncture for the industry and the government. The outcome of this standoff will not only affect the immediate stakeholders but also have broader implications for Ghana’s economic stability and the livelihoods of thousands of workers.

As the situation unfolds, all eyes will be on the Ministry of Finance and the Vice-President’s office, hoping for a resolution that balances the needs of the economy with the concerns of the manufacturing sector.