The National Association of Sachet and Packaged Water Producers (NASPAWAP) has united with plastic manufacturers in a powerful call to the government, urging the indefinite suspension of the newly imposed 5% excise tax on finished plastics.
In a statement, NASPAWAP has underscored the significant financial strain this tax would place on consumers, particularly in the face of price hikes in bottled and sachet water since January 2024, attributed to the cedi’s depreciation against the US dollar.
The association acknowledged the government’s environmental intentions behind the tax and proposed an alternative approach that aligns with these goals.
They suggested reducing the environmental excise tax rate to 1% for all imported plastic granules at entry points and imposing a 10% tax on the CIF value of semi-finished plastics imported into the country. NASPAWAP argued that this strategy would effectively fund plastic management efforts without exacerbating consumer costs.
NASPAWAP has also highlighted the long-standing burden on the private sector in managing plastics, particularly the absence of government subsidies in operations from collection to recycling.
The association concluded by reiterating their call for the government to heed their request to indefinitely suspend the additional 5% excise tax on finished plastics and engage in discussions with stakeholders, underlining the crucial role of the government in finding a viable solution.
