File photo of bottle water
Cost of doing business high for manufacturers, Producers
Sachet, packaged water prices increase, Association
Association to notify government of impact of taxes, Nunoo
President of the Association of Sachet and Packaged Water Producers, Magnus Nunoo, has confirmed a 25% hike in the prices of products.
According to a Joy Business report, president of the association attributed the increase to high import duties, taxes imposed and high cost of electricity.
In an interaction with the portal, Magnus Nunoo said a persistent increase in sachet and packaged water products is expected to continue as a result of these factors which have impacted the cost of doing business.
“We can confirm that the cost of purified drinking water has increased. The upward adjustment started somewhere from the beginning of December 2021. There is no doubt attributing this to the high cost of production – from water, electricity to transport,” he disclosed.
“Producers of water pay almost 25% levy on their products, while producers of beer pay 10% less. In effect, it is cheaper to produce beer in Ghana than water,” Nunoo bemoaned.
President of the Association further revealed that the price margin of the increase, for sachet and packaged water, ranges from 25 pesewas to 50 pesewas.
“Pure water sachet has increased by 20 pesewas, while that of bottled water has gone up by about 50 pesewas. This can change in no time soon,” he stated.
Meanwhile, the Association of Sachet and Packaged Water Producers have indicated their resolve to issue a formal statement to the government over the increasing taxes.
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Originally Appeared Here