HomeBusinessBusinessFree Zone companies’ illegal plastic sales cost Ghana ¢264m annually

Free Zone companies’ illegal plastic sales cost Ghana ¢264m annually

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The Ghana Plastic Manufacturers Association has accused certain Free Zones Companies of engaging in illegal activities that result in substantial revenue losses for the government.

According to the Association, around 12 out of the 166 plastic manufacturing companies in Ghana are registered as Free Zones Enterprises.

These companies are reportedly importing plastic raw materials duty-free and then selling them illegally on the local market, thereby evading import duties.

The association claims this practice has caused the government to lose approximately GH¢22 million per month, which translates to about GH¢264 million annually.

President of the Plastic Manufacturers Association, Ebbo Botwe, expressed his frustration in an interview with Citi TV over the lack of response from the authorities regarding this issue.

“One sad part of this tax is that in Ghana currently, we have about 166 plastic manufacturing companies and out of this, just about 12 of them are Free Zones Enterprise registered.

“Some of these 12 registered Free Zone Companies, are importing plastic raw materials and illegally selling them on the open local market, thereby causing the government to lose millions and millions in revenue, by way of avoiding payment of import duties – thus depriving the government of the needed revenue. Free Zone Companies are exempted from paying import duties.”

“Eighteen months ago, we reported this situation to the Commissioner General of Ghana Revenue Authority, the Ministry of Finance, the Ministry of Trade & Industries and the Ghana Free Zones Authority but this illegal business continues.

“It is estimated that the government is losing approximately GH¢22.05 million per month or GH¢264.6 million annually through these illegal activities.

“This is a serious revenue leakage and we believe we have given enough information to the government to help stop this practice but instead, here we are saddled with yet another new tax.”

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