The National Association of Sachet and Packaged Water Producers (NASPAWAP) Joins Call to Suspend 5% Excise Tax on Finished Plastics
NASPAWAP has aligned with plastic manufacturers in urging the government to indefinitely suspend the newly imposed 5% excise tax on finished plastics. The association cited concerns over the economic burden this tax would impose on consumers.
In a statement, NASPAWAP pointed out significant price increases in bottled and sachet water since January 2024, attributing these hikes to the depreciation of the cedi against the US dollar. They argued that the additional 5% excise tax, purportedly aimed at addressing environmental challenges posed by plastics, would further strain consumers financially.
The association highlighted an existing 10% environmental excise tax on selected plastics at entry ports, emphasizing their involvement in the decision-making process regarding taxing plastic granules upon importation. However, they noted discrepancies in implementation, where only a limited number of plastic types were included.
NASPAWAP proposed an alternative strategy: 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 argued that this approach would generate more revenue for plastic management compared to the contentious 5% tax on finished products.
They also emphasized that the private sector has borne the full cost of plastic management interventions in the country, from collection points to recycling stations, without government subsidies.
NASPAWAP concluded by urging the government to heed their call for an indefinite suspension of the 5% excise tax on finished plastics and to engage stakeholders in meaningful dialogue on the issue.