More support for taxes on packaged water in Ghana

Accra, Feb. 5, GNA - Stakeholders in the water and sanitation sectors on Friday expressed support for the proposed 20 per cent tax on packaged water.

At a workshop to discuss government's budgetary allocation for the sector, participants agreed that there was the need for more funding in the sector to enable them to provide efficient water and sanitation services to all people.

Mr Kwaku Sakyi-Addo, General Manager, Communications at Aqua Vitens Rand Limited, Operators of Ghana Water Company Limited, suggested that the tax should not only be on bottled water but also on sachet water since the latter was produced more and caused more environmental problems. He said some percentage of the tax should be used for development in the water and sanitation sectors to ensure better provision of services.

A Bill that approved a 20 per cent 'ad valorem' tax on bottled and packaged water has generated heated debate as to whether it includes sachet water. The Ministry of Finance has set up a technical committee to look at the development.

Mr Sakyi-Addo pointed out that the water sector especially needed more investment in terms of infrastructure and equipment, and stressed that there was the need for increased funding in the sector. Other participants at the workshop agreed that the tax should be implemented and some suggested that a greater chunk of money that accrued from such taxes should be used mainly for development in the water sector.

The workshop was organized by GrassRoots Africa, a non-governmental organization that advocates improved water and sanitation services especially in rural areas, to discuss possible funding options for the development of the sector.

Mr Rudolf Amenga-Etego, Executive Director of GrassRoots Africa, said the lack of money in the sector was the biggest obstacle that hindered the implementation of policies that could help Ghana to achieve improved services in the water and sanitation sectors.