Some tax analysts say dialogue among stakeholders is the best way to resolve the prevailing controversy surrounding the excise duty imposed on packaged water in the country.

There have been divided opinions over whether the 20 percent Ad-valorem tax affects sachet water and the analysts say only stakeholder re-engagement could ensure that a common front is established.

 Following the passage of the law on the tax last year, a stakeholder deliberation involving the VAT service, CEPS, Finance Ministry and the Packaged Water Producers was held two weeks ago.

 The meeting reached the consensus that the tax which affects sachet and bottled water was to be implemented from March during which price increases in the items by the manufacturers are also due.  

However, the Chairman of the Finance Committee of Parliament, James Avedzi advocated a contrary view that according the law, sachet water is excluded.

In the light of this, the Integrated Social Development Centre (ISODEC) also stated a completely different view that the tax should be completely scrapped.

The Tax Director of Private Accounting firm, PWC, George Kwatia told Citi Business, it is in the ultimate of the nation for the stakeholders to consider dialogue on the matter towards the effective implementation of the tax.          
             
According to him, “the way forward is for all parties to sit and dialogue and see how best we can get this issues resolved because if the intent wasn’t to tax water, then it should be cleared that water wasn’t the target but if the intent was to tax water and the rational for doing so is to safe guard the environment and then possibly raise some funding to ensure that they have some revenue cleaning the environment then that should also be proven by all parties to ensure that Ghana moves forward as a better nation for all.