The Ghana Manufacturers of Plastic Products stated that the increase of all plastic products by 7%, effective today, July 1st, 2025, due to the implementation of a 5% excise tax, will have an extended effect on Ghanaian consumers.
The President of the Association, Ebbo Botwe, stated that although the increment is regrettable, it has become necessary to cushion manufacturers against the added tax burden imposed by the new government policy.
He described the tax as a consumer tax that consumers, not manufacturers, should bear.
He explained that the tax was originally 5%; however, due to the “tax on tax” policy, including the National Insurance Levy, GETFund Levy, Value Added Tax, and others, it increased to 7%.
Speaking on Nyankonton Mu Nsem on Rainbow Radio 87.5FM, he said this new increment would increase the price of sachet water, bottled water, pharmaceutical products, and other products that are packaged in plastic.
He stated the Association was hopeful the government would suspend the 7% tax on plastic products to allow for dialogue with stakeholders on alternative revenue-raising options.
“The increment has taken effect, but we are hopeful that the government will suspend the implementation so we can dialogue and look at other ways of generating revenue. We had already proposed to the government other ways this could be done without having a direct impact on consumers.
The new increment will affect the price of sachet and bottled water. It will certainly increase the prices of pharmaceutical products and beverages. Indeed, over 89% of industries in Ghana use all kinds of plastic packaging. You use plastic when building because your electrical wiring, PVC pipes, water connections, bathrooms, sanitary ware, and others come with plastic packaging.”
Mr Botwe stressed that with this new increment, the final consumer would be paying an extra ten per cent, and “we think it is going to be a serious challenge.”
By: Rainbowradioonline.com/Ghana
