Ghanaian consumers are bracing for a fresh wave of price increases following the introduction of new tax policies by the Ghana Revenue Authority (GRA), which took effect on July 1, 2025.
The new measures, introduced as part of efforts to boost domestic revenue, have triggered widespread concern about their potential to deepen the financial burden on already struggling households.
Among the most significant changes are:
- A revised tax framework targeting informal sector workers, including market traders and artisans
- A 5% excise tax on locally manufactured plastic products
- A 15% tax on non-life insurance premiums
Economists warn that these taxes will have a ripple effect across the economy, driving up the cost of essential goods and services.
One of the most contentious aspects is the 5% excise tax on plastic products. Industry players have indicated that this cost will inevitably be passed on to consumers, affecting the price of everyday items such as bottled water, takeaway meals, and other packaged goods.
“This 5% excise tax is essentially a consumer tax,” said Ebbo Botwe, President of the Plastic Manufacturers Association of Ghana. “We’ve been trying to engage the government because if the consumer disappears, so does our business.”
The increased cost of plastic packaging is expected to hit small food vendors particularly hard, many of whom rely on affordable plastic containers to serve customers.
These developments come at a difficult time for many Ghanaians, who are still recovering from the effects of prolonged inflation and economic instability. While the Ghanaian cedi has shown some recent signs of stability, analysts caution that any relief may be short-lived once the full impact of the tax hikes filters through the market.
Households, especially those in low- and middle-income brackets, may soon face additional financial strain as prices rise across sectors — from food and transport to insurance and daily consumables.
Experts emphasize the need for targeted interventions to protect vulnerable populations, warning that the new tax measures, if not managed carefully, could reverse progress in inflation control and deepen existing economic hardship.
Source; theghanareport
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