The Association of Ghana Industries (AGI) is calling on government to ensure greater transparency and accountability in the use of environmental levies collected from businesses, warning that the absence of clear impact undermines national waste management efforts.
According to John Defor, AGI’s Director of Policy and Research, while businesses across the country continue to meet their tax obligations under the Environmental Excise Tax (EET) and the Sanitation Levy, there is little evidence that the funds are being effectively deployed to address Ghana’s escalating plastic waste and sanitation crisis.
“We are fulfilling our tax obligations, but we don’t see government putting those taxes to the intended use,” Mr. Defor said
Introduced in 2013, the Environmental Excise Tax imposes a 10% charge on the Cost, Insurance, and Freight (CIF) value of imported plastic raw materials. By law, 50% of revenue generated from the EET is to be dedicated to plastic waste management infrastructure.
The Sanitation Levy, also known as the “bola tax,” adds a 10-pesewa fee per litre of fuel purchased by consumers.
Me. Defor said the revenue raised from these levies is substantial and should be clearly channeled into projects such as recycling facilities, public education on environmental sustainability, and improved waste collection systems.
He called for the establishment of a ring-fenced fund to prevent the levies from being absorbed into the national Consolidated Fund without clear application.
“With Ghana’s National Plastic Management Policy already in place, we expect stronger government commitment and visible results,” he said.
On proposals to ban certain plastic products, Mr. Defor raised concerns about the potential negative effects on local manufacturers.
He emphasized that many companies have already adopted environmentally responsible practices, including recycling and second-life solutions for plastic products, and warned that a blanket ban could hurt legitimate businesses already working toward sustainability.
Despite gaps in public sector implementation, private sector players, particularly under the AGI umbrella, are actively addressing plastic pollution.
The Ghana Recycling Initiative by Private Enterprises (GRIPE), a coalition supported by AGI, continues to spearhead efforts in waste reduction and education.
In a recent initiative, GRIPE donated 100 eco-friendly desks and chairs made entirely from recycled plastic to five basic schools in the Ga West Municipal Assembly. Beneficiary schools included Odumase M/A Basic School 1, Medie M/A Basic School, Otsirikomfo M/A Basic School, Kwashiekuma Methodist Basic School, and Afuaman M/A Basic School.
GRIPE President Eric Boamah explained that the donation was not only about improving school infrastructure but also about instilling environmental consciousness in students.
“We’re solving two problems, educating the youth and promoting sustainability,” he said.
Both AGI and GRIPE are calling for stronger alignment between government policy and practice.
They argue that while private sector efforts are yielding measurable benefits, a lack of transparency in how environmental levies are spent risks derailing broader national goals on sustainability and waste reduction.
The AGI insists that without proper oversight and clear disbursement mechanisms for environmental taxes, Ghana’s fight against plastic pollution will remain slow and ineffective.
