Sachet and packaged water producers across Ghana are calling for a comprehensive review of the government’s excise tax on plastic packaging, citing the tax as a major threat to the survival of their businesses and the affordability of potable water for millions of Ghanaians.
The producers, many of whom operate small- and medium-scale businesses, say the current tax regime places an unsustainable burden on their operations. According to industry players, the excise tax has significantly increased the cost of production, with ripple effects felt in the retail price of sachet and bottled water across the country.
In a statement released over the weekend, the National Association of Sachet and Packaged Water Producers (NASPAWAP) stressed that water is a basic necessity, not a luxury, and should be treated as such in tax policies.
“We are not opposed to environmental responsibility,” the statement read. “However, taxing water packaging materials without a clear recycling or support mechanism will only hurt consumers and discourage legitimate businesses that provide access to safe drinking water.”
The group has proposed that the government engage stakeholders in a broader consultation process to explore alternative, environmentally friendly solutions—such as investment in recycling plants and public education on plastic waste management—rather than punitive taxation.
Water producers are urging the Ministry of Finance and the Environmental Protection Agency to consider suspending the excise tax while discussions continue. They warn that if no intervention is made, many producers may be forced to shut down operations, leading to job losses and reduced access to affordable drinking water in both urban and rural areas.
The Association plans to submit a formal petition to Parliament in the coming weeks, requesting a policy review and the formation of a joint committee to chart a sustainable path forward for the water industry.
