Packaged water producers have welcomed the temporary suspension of a 20 per cent ad valorem tax imposed on their products.
The suspension follows protests lodged by the producers against the tax which affects all packaged water including those in sachets referred to as pure water.
Government imposed the tax because of the pollution caused to the environment by the used rubbers.
The producers had initially refused to cooperate with government in the implementation of the tax because they say it would sharply increase the price of their products well beyond the reach of their customers.
VAT Commissioner Anthony Ewereko-Minlah tells Joy Business the one month moratorium should help them identify all the producers who are expected to charge the tax, one of the key conditions demanded by the producers.
According to him, the agency has offices in all 10 regions and is aggressively pursuing measures the new move.
But the water producers say more time would be needed.
Managing Director of Voltic Mineral Water, Jason Schmidt, said pleaded with government to suspend the programme till April.
Meanwhile Voltic has rebranded its flagship product, Voltic Mineral Water.
According to Mr. Schmidt, this would help position the product as the preferred mineral water.
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