By Edward Acquah
Accra, Nov.15, GNA – The Government will review and expand the Environmental Excise Duty to cover plastic packaging, industrial and vehicle emissions.
Mr Ken Ofori-Atta, Minister of Finance, who announced this in the 2024 Budget presentation on Wednesday, said the revision formed part of efforts to address the negative externalities of plastic waste and pollution.
As part of efforts to deal with plastic waste, the Government introduced 10 per cent Environmental Excise Tax (EET) under the Customs and Excise (Duties And Other Taxes) (Amendment) ACT, 2013, (Act 863).
The tax is computed on the Cost, Insurance and Freight (CIF) value of plastic and plastic products imported and it is paid at the point of entry into Ghana.
The law also provides that, not less than 50 per cent of the revenue accruing shall be paid into a Fund designated as “Plastic Waste Recycling Fund” and the revenue accruing shall be dedicated to recycling of plastic waste and production of plastic waste bins and bags and the production and use of biodegradable plastics.
Data from the Ghana Plastic Manufacturers Association indicate that 87 per cent of industries in Ghana use plastic packaging.
In Ghana, some 120 companies manufacture over 52,000 tonnes of various plastics and plastics products per year, according to the Ghana Plastic Waste Management Policy Document.
According to the Document, more than one million tonnes of plastic waste are generated every year, suggesting that domestic manufacturing accounts for less than 5 per cent of all plastics in the country.
It is estimated that out of one million tonnes of plastics produced in Ghana annually, only 10 per cent is recycled, with nine per cent leaking into the ocean.
GNA