The National Association of Sachet and Packaged Water Producers (NASPAWAP) has joined plastic manufacturers in urging the government to indefinitely suspend the recently introduced 5% excise tax on finished plastics.
According to NASPAWAP’s statement, this appeal is driven by concerns about the economic hardship it would impose on consumers.
NASPAWAP points out significant price hikes in bottled and sachet water since January 2024, which they attribute to the depreciation of the cedi against the US dollar.
NASPAWAP argue that while the 5% excise tax may be intended to address environmental issues related to plastics, it could exacerbate financial pressures on consumers.
Regarding existing tax measures, NASPAWAP highlights a 10% environmental excise tax on selected plastics at entry ports, originally aimed at broadening the tax base to include all plastic granule imports but not fully implemented as intended.
In response, NASPAWAP proposes an alternative approach: reducing the environmental excise tax rate to 1% for all imported plastic granules at entry points and implementing a 10% tax on the CIF value of semi-finished plastics imported into the country.
They believe this adjustment would generate more revenue for effective plastic management compared to the contentious 5% tax on finished products.
NASPAWAP also underscores that the private sector has historically borne the costs of plastic management initiatives in the country, without government subsidies for collectors or recyclers.
They urge the government to suspend the 5% excise tax on finished plastics and engage with stakeholders to explore viable solutions collaboratively.
