The National Association of Sachet and Packaged water producers (NASPAWAP) has supported calls by plastic manufacturers for government to suspend the newly imposed 5% excise tax on finished plastics.
The association in a statement argued that, implementing the 5% excise tax which is intended to address environmental issues caused by plastics would only worsen the hardship consumers are already facing.
“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,” the association said.
According to NASPAWAP 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 could be an alternative to reduce the burden on both manufacturers and consumers adding that, this 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.
The association is therefore calling on government to heed to the call to suspend indefinitely the additional 5% Excise on finished plastics, and engage with stakeholders.
