Packaged Water Producers urge gov't to suspend new excise tax on plastic packaging

The National Association of Sachet and Packaged Water Producers (NASPAWAP) has called on the Ministry of Finance to suspend the newly introduced 5% excise tax on plastic packaging, describing it as a duplication of existing taxes that will impose undue hardship on producers and consumers alike.
In a statement issued on Tuesday and co-signed by Magnus Nunoo, National President, NASPAWAP and Kwame Agyapon-Ntra, Director of Corporate Affairs said it acknowledges the government's environmental objectives but warned that the new tax, set to take effect from July 1, 2025, overlaps with an existing 10% environmental excise tax imposed on selected plastic materials at ports of entry since 2011.
“We strongly believe that this new tax duplicates the existing 10% environmental excise tax,” the statement read.
“This duplication of taxes will unnecessarily burden our members and ultimately, the final consumer.”
The Association stressed that while it supports taxation aimed at improving environmental outcomes, it cannot endorse double taxation, especially when the costs will be passed on to an already struggling population.
Due to the essential nature and price sensitivity of sachet and bottled water, producers say they are unable to immediately transfer the cost to consumers without severe consequences.
“As producers of sachet water, we cannot immediately pass on this tax to consumers due to the nature of our product,” NASPAWAP noted.
“We urge the government to consider our request and prevent double taxation.”
The Association is therefore appealing to the government to delay the implementation of the new 5% tax until the older 10% levy is reviewed or removed.
NASPAWAP says it is ready to engage with the government and relevant stakeholders to find a more balanced solution that aligns environmental sustainability with business viability
Source: Classfmonline.com/Cecil Mensah
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