Consumers could start feeling the pinch when purchasing bottled drinking water as beverage companies introduce new prices in line with a Budget measure substituting the eco-tax with an excise levy per litre of water.
The eco-contribution of 2c per bottle has been replaced by an excise tax of 0.5c per litre. The measure came into force last month but beverages companies are only now starting to amend their prices to reflect the change.
Island Beverages Ltd said it had chosen to absorb the extra cost for the first three weeks but has now increased the prices of its 19 and 12-litre bottles by 5c.
Asked whether the company had plans to change the prices of any of any of the other products, mainly the smaller bottles, a spokeswoman said that for now, only the larger bottles would be affected by the price change.
The GRTU is still insisting it is unfair for businesses to have to pay twice
Simonds Farsons Ltd. said it had not yet changed the prices of any of the products. A spokes-man for General Soft Drinks also said that the company had notyet made any changes but that it was evaluating its options for the future.
The spokesman said the company was awaiting results from talks between the Chamber of Small and Medium Enterprises – GRTU, and the government before making any changes.
Last month, the GRTU deplored the decision and said that the substitution of the eco-contribution with excise tax ignored any progress made and “puts us six years backwards”.
“GRTU was always against businesses paying their environmental dues twice – once in the form of eco-tax and once to an authorised scheme that took care of their environmental obligations,” it said after the measure was announced.
Speaking to this newspaper, GRTU CEO Abigail Mamo said discussions with the government were still ongoing and the GRTU was still insisting that it was unfair for businesses to have to pay twice.
“We have been told that the excise tax is more enforceable and so fair competition would be guaranteed.
If that really is the case, we might reach a compromise,” Ms Mamo said.
This could only be achieved, Ms Mamo said, if the businesses are assured that there would be stricter enforcement which discourages non-compliance.
CUSTOMS CLARIFICATION
The Customs Department later clarified that according to the Budget, the levy amounted to €0.005 (half a cent) per litre. The excise tax replaced the eco-contribution of 2c per bottle. The error is regretted.