Fresh tax measures to hit consumers hard

Ghanaian consumers are likely to face higher prices in the coming weeks following the Ghana Revenue Authority’s (GRA) rollout of new tax measures effective July 1, 2025.

The changes, aimed at boosting domestic revenue, are already sparking concern over their potential to worsen the cost of living for ordinary citizens.

Among the most impactful measures is a revised tax regime targeting informal sector workers, including market traders and artisans, alongside a 5% excise tax on locally manufactured plastic products and a 15% tax on non-life insurance premiums.

These taxes are expected to ripple through the economy, raising the cost of basic goods and services.

Of particular concern is the 5% excise tax on plastic products, which will directly affect packaging costs for everything from bottled water to takeaway meals, common items in daily Ghanaian life.

Plastic manufacturers have made it clear they have little choice but to pass the full cost on to consumers.

“This 5% excise tax is essentially a consumer tax, so the impact is 100% on the consumer. We’ve been trying to engage the government because if the consumer disappears, so does our business,” Ebbo Botwe, President of the Plastic Manufacturers Association of Ghana, said.

The broader implication is that even basic purchases such as meals from local food vendors, commonly packaged in plastic, could become more expensive.

This comes at a time when many Ghanaians are still recovering from months of high inflation and economic uncertainty.

Although the cedi has shown some recent stability, which briefly slowed inflation, this relief may be short-lived as the full effects of the new taxes filter through the economy.

The added pressure on consumer spending could deepen financial strain on low- and middle-income households already grappling with high utility bills, transport fares, and food prices.

Analysts warn that without strong measures to cushion the most vulnerable, the new tax regime could undermine progress in reducing inflation and risk triggering renewed hardship for millions of Ghanaians.