Members of the public are likely to spend double on sachet water beginning today [Monday, December 27], according to the National Association of Sachet and Packaged Water Producers (NASPAWAP).
The group announced increments that would see sachet water popularly called ‘pure water’ sold at 40 pesewas from the previous 20 pesewas.
The 500ml bottled water sold at GHC1.50, and the 750ml or medium-sized bottled water will be retailed at GHC2.
Additionally, the 1.5L or large bottled water is to be retailed at GHC3.50, while a bag of sachet water, 500ml of 30pcs, will now sell at GHC4.50 from the retail trucks.
For the mini shops, they are expected to increase it to GHC6.
The association said in a statement that it was necessary due to the rising cost of inputs such as fuel, vehicle spare parts, and packaging materials which are mainly imported.
The release signed by the President of the National Association of Sachet and Packaged Water Producers, Magnus Nunoo, said:
“At our previous review, the Ghana Cedi to the dollar was in the region of GHC4.50. Currently it is inching up to GHC6.50. Fuel prices have also significantly gone up since our last review”.
“Regrettably, fuel price reviews attract a lot of public outcries anytime the government imposes the slightest tax on it. However, the public turns a blind eye to taxes on bottled water, which account for the high prices consumers have to bear”.
They lamented that “in the past, producers bore part or all of these huge taxes just to survive, especially in the wake of imported bottled water, most of which evade these taxes, but it is becoming increasingly unsustainable for the local water industry”.
“It has become necessary that some of these indirect taxes, production, and distribution costs, be passed on to the consumer, adding that “It is important for consumers to know that any bottled water they purchase has a fixed levy of 23.5% besides VAT/NHIL”.
“The fixed levies are made up of 17.5% excise tax plus additional 6% levy before VAT/NHIL”.