The National Association of Sachet and Packaged Water Producers (NASPAWAP) has joined plastic manufacturers in calling on the government to indefinitely suspend the newly imposed 5% excise tax on finished plastics.
The association argues that this tax will exacerbate financial hardships for consumers.
In a recent statement, NASPAWAP proposed an alternative approach: reducing the environmental excise tax rate to 1% at entry points for all imported plastic granules, and imposing a 10% tax on the CIF (Cost, Insurance, and Freight) value of semi-finished plastics imported into the country.
They believe this strategy would better address the environmental concerns posed by plastics while being less burdensome to consumers.
“There is already a 10% environmental excise tax on selected plastics at the ports of entry. We supported taxing plastic granules at entry points to broaden the tax base, as all plastic granules are imported. However, during implementation, only a selected few were captured,” the statement explained.
NASPAWAP is urging the government to suspend the additional 5% excise tax on finished plastics indefinitely and engage with stakeholders to find a more equitable solution.
Story by: Sarah-Joyce Komenan
Comments