The National Association of Sachet and Packaged Water Producers (NASPAWAP), in collaboration with plastic manufacturers, is urging the government to indefinitely suspend the newly introduced 5% excise tax on finished plastic products.
In their statement, NASPAWAP emphasized that their appeal is based on concerns about the economic burden this tax would place on consumers. They pointed out that prices for bottled and sachet water have already risen significantly since January 2024, primarily due to the depreciation of the Cedi against the US dollar.
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The association argued that while the 5% excise tax may be intended to address environmental issues caused by plastics, it would only exacerbate the financial difficulties faced by consumers.
“We believe the motive for the 5% extra excise tax would be to rake in funds to tackle the menace plastics are posing to the environment. There is an existing 10% environmental excise tax on selected plastic at the ports of entry. We were part of the decision to tax plastic granules at the entry ports. This method broadens the tax base since all plastic granules are imported. However, at the implementation stage, only a selected few were captured,” part of the statement read.
The association proposed an alternative approach, “Our suggestion to the government is to reinforce the environmental Excise tax at the entry points by reducing the tax rate to 1% and make it applicable to all imported plastic granules without any exceptions.
“However, Semi-finished plastics imported into the country be taxed at 10 % of the CIF value. We believe this will rake in more funds for plastic management than the additional 5% Excise tax imposition on finished plastics.
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“We also wish to put on record that since the inception of plastics in this country, all interventions in respect of managing plastic have been solely borne by the private sector. From the collection point to the recycling stations there has not been any subsidy from the government to the collectors etc.
“NASPAWAP is therefore calling on government to heed to the call to suspend indefinitely the additional 5% Excise on finished plastics, and engage with stakeholders,” the association added.
