Plastic Manufacturers want 10% env’tal tax halved
The Ghana Plastic Manufacturers Association (GPMA) has asked for a reduction in the Environmental Excise Tax (EET) from 10 per cent to five per cent to bring relief to members.
Advertisement
At 10 per cent, the association said the tax was too high and, therefore, injurious to business, hence the need for a downward review.
The government should also help review the directive on the use of oxo-biodegradable additives in the production of all flexible plastics.
To help achieve these, the Executive Secretary of the GPMA, Mr Daniel Tornyingah, proposed that the Ministries of Finance, Trade and Environment dialogue to address the issues surrounding the EET and the directive on the oxo-biodegradable additives for the benefit of the industry.
He gave the proposal in an interview with the GRAPHIC BUSINESS.
He said the dialogue with the three ministries and other relevant stakeholders in the plastic industry would help create the platform to explore policy alternatives towards achieving sustainable plastic waste management targets without suffocating operators.
Mr Tornyingah said the imposition of the EET and the cost of procuring the oxo-biodegradable additives was affecting their final products on the market and so should be reduced to five per cent.
Tax yields GH¢100m
The Ministry of Environment, Science and Innovation (MESI) reached an agreement with the GPMA to ensure that plastic materials produced in the country were made with oxo-biodegradable additives as a way to protect the environment.
The oxo-biodegradable additives ensure that plastic materials decompose easily without posing environmental challenges.
Mr Tornyingah said with support from the Business Sector Advocacy Challenge (BUSAC) Fund, a research by the GPMA lead to the introduction and use of the Oxo-biodegradable Additive since November 2015. Those additives, he said were touted as the most sustainable measure for plastic waste management.
He said from 2013 till date, the association estimated that the collection of the tax had yielded GH¢100 million.
Given that the tax collection and the use of oxo-biodegradable additives run concurrently, Mr Tornyingah said the government was overburdening plastic manufacturers, hence the need to choose one policy intervention that can help solve the problem.
“If we have all come to a compromise to solve plastic waste and government is using two means to solve one problem, then it is a challenge in production cost to manufacturers. The final consumer sees our products a bit expensive than imported ones because they do not attract this additional 10 per cent,” he said.
He said the association would continue to intensify the advocacy action that the GPMA initiated to demand a reduction of the Environmental Excise Tax.