Along with plastic manufacturers, the National Association of Sachet and Packaged Water Producers (NASPAWAP) has called on the government to halt the recently implemented 5% excise tax on completed plastics indefinitely.
The association stated in a statement that the difficulty the 5% tax would cause for consumers is what prompted this demand.
The group cited the notable increases in bottled and sachet water prices from January 2024 and attributed them to the weakening of the cedi in relation to the US dollar.
They contend that the 5% excise tax, which is ostensibly meant to address plastics’ negative environmental effects, will merely make things more expensive for 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,” A portion of the declaration was read.
The group suggested a different strategy that would entail a 10% tax on the CIF value of semi-finished plastics imported into the nation and a 1% reduction in the environmental excise tax rate at entry points for all imported plastic granules.
They think that this approach would bring in more money for plastic management than the divisive 5% levy on final goods.
“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.
