The
National
Association
of
Sachet
and
Packaged
water
producers
(NASPAWAP)
has
joined
calls
by
plastic
manufacturers
for
the
government
to
indefinitely
suspend
the
newly
imposed
5%
excise
tax
on
finished
plastics
This
call,
according
to
a
statement
by
the
association,
has
been
necessitated
by
the
hardship
the
5%
tax
would
bring
to
consumers.
The
association
highlighted
the
significant
price
hikes
in
bottled
and
sachet
water
since
January
2024,
attributing
them
to
the
cedi’s
depreciation
against
the
US
dollar.
They
argue
that
the
5%
excise
tax,
presumably
intended
to
address
environmental
issues
caused
by
plastics,
would
only
exacerbate
the
financial
strain
on
consumers
“We
believe
the
motive
for
the
5%
extra
excise
tax
would
be
to
raking
in
funds
to
tackle
the
menace
plastics
is
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:
reducing
the
environmental
excise
tax
rate
to
1%
at
entry
points,
applicable
to
all
imported
plastic
granules,
and
imposing
a
10%
tax
on
the
CIF
value
of
semi-finished
plastics
imported
into
the
country.
They
believe
this
method
would
generate
more
funds
for
plastic
management
than
the
contentious
5%
tax
on
finished
products.
“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
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.
“We
also
wish
to
put
on
record
that
since
the
inception
of
plastics
in
this
country,
all
interventions
in
respect
of
managing
plastic
has
been
solely
borne
by
the
private
sector.
From
the
collection
point
to
the
recycling
stations
there
has
not
been
any
subsidy
from
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.