Summary: Producers in Ghana’s packaged water industry have called on the government to suspend its newly introduced 5% excise tax on plastic packaging, citing concerns that it will drive up consumer prices and put strain on businesses. The industry body, the National Association of Sachet and Packaged Water Producers, warned the additional tax burden could lead to price hikes, particularly affecting lower-income households.
Ghana’s packaged water industry is calling on the government to suspend a newly introduced 5% excise tax on plastic packaging, warning that the policy could drive up consumer prices, strain businesses, and duplicate existing levies already in force.
The National Association of Sachet and Packaged Water Producers (NASPAWAP), in a formal petition to the Ministry of Finance, argues that the new tax—which came into effect July 1—mirrors an existing 10% environmental levy that has been applied at the ports since 2011.
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“This is a clear case of double taxation,” said NASPAWAP President Magnus Nunoo in a statement co-signed with Corporate Affairs Director Kwame Agyapon-Ntra. “We support sustainability, but this policy adds unnecessary financial pressure on producers and consumers alike.”
A Strained Sector Sounds the Alarm
The group, representing hundreds of producers across the country, warned that the additional tax burden could force price hikes on sachet and bottled water, particularly affecting lower-income households that rely on packaged water as a primary source of hydration.
“We simply cannot absorb this cost without passing it on,” the statement added. “Yet we also recognize the price sensitivity of our product—this places the industry in an impossible position.”
NASPAWAP emphasized that producers are not opposed to environmental taxation in principle, but the overlap between the new 5% excise tax and the older 10% levy at the ports amounts to policy overreach.
Dialogue, Not Disruption
The Association is urging the government to delay the rollout of the new tax until a review of the environmental levy structure is conducted. They have also signaled readiness to engage in dialogue with the Ministries of Finance and Environment to develop a more balanced and sustainable solution.
“We are willing to sit with government and stakeholders to design a policy that meets environmental goals without crippling an essential industry,” the group said.
With Ghana’s mid-year fiscal policies under scrutiny, NASPAWAP’s challenge could be an early warning of broader pushback from small and medium-scale industries.
Economic and Social Ripple Effects
Industry analysts speaking to Accra Street Journal note that sachet water producers operate on slim margins and high volume, making them uniquely vulnerable to tax shocks. Any disruption to their cost structure could lead to price volatility, reduced access, and even job losses in an industry that employs thousands.
“This is not just about water,” one economist noted. “It’s about affordability, access, and employment in an already fragile consumer economy.”
As the government attempts to reconcile revenue generation with climate and environmental objectives, Accra Street Journal will continue to track the unfolding debate and its broader implications for industry and the everyday Ghanaian.
Last Updated on March 13, 2026 by Samuel Kwame Boadu
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Samuel Kwame Boadu is a Ghanaian media entrepreneur and storyteller with a passion for amplifying urban voices and uncovering everyday truths. He is the Editor-in-Chief and Founder of Accra Street Journal, a dynamic digital platform dedicated to capturing the pulse of Ghana’s capital—its people, culture, challenges, business, sports and innovations.
