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‘6,000 youth’ to lose jobs as water factories shutdown over ‘high levies’

Author: Baria Johnson | Published: January 20, 2025

Bottles of water at a factory in Bor, Jonglei State. (Photo: ST).

The Association of South Sudan Manufacturers (ASSM) said water bottling companies are shutting down starting on Monday 20th January 2025 due to high levies on plastic bottles imported into the country – further claiming that the action could potentially leave 6,000 workers unemployed.

According to Adam Kubanja, chairperson of the manufacturers association, a 500-milliliter bottle of water which used to be at 0.01 dollars, is now charged at 0.5 dollars.

Adam added that the action was taken following a two-week standoff over the high fees between the government and manufacturers at the Nimule border.

Mr. Kubanja said the levies could triple the current water prices. He confirmed in a statement that the factories will indefinitely close down until a solution is reached.

“Starting today 20th January 2025, water bottling companies will be forced to shut down their operations due to lack of plastic bottles used to package the water,” he said.

“The shortage of bottles comes as a result of high plastic levy recently imposed on plastic bottles being imported into the country by the Ministry of Environment through PLASCOM that has been a standoff in clearance of preforms from Nimule for now two weeks.”

“The closure is set to continue until the standoff between the ministry of environment and water bottling companies reach at an amicable solution to the problem. The levy is being charged at 0.01$ per bottle of 500 ml of water and 0.02$ for every bottle of 600 ml to 1.5 litters.0.1 to 0.5$.”

Kubanja pointed out that the closure of the water companies will affect over 6,000 youths employed by the companies. He calls on the government to intervene and bring a solution.

“The closure of this companies means over 6,000 youths will be unemployed for the period as most youths depends on these company’s operation for their day to day income.”

He said the association has noted that the rate being implemented is “extremely high” and will triple the current water prices making it unaffordable to the common citizen.

According to him, the manufacturers have already invested on plastic recycling plants and are buying the plastic all across Juba for recycling, why would the ministry again collect such a high levy on the same Manufacturers who already have the initiative to clean Juba.”

However, South Sudan Revenue Authority (SSRA) said the increase is not a tax but a service fee for collection of plastic bottles wastes across the country as per the financial act 2024/2025.

The directive also indicated that the levies are not increased from 0.2 to 0.5 as stated by the manufacturers but to 0.2 per a bottle of water or soft drinks.

“Customs division are directed to inform all that may concern especially producers of soft drinks and purified water, soft drink importers, plastic generations and stakeholders of the implementation of the environment fee of 0.01 USD per bottle 600ml and 0.02 USD per bottle above 600ml of water, soft drinks and plastic liquids,” SSRA said in a document dated 19th December 2024.

“This is not a tax but a service fee for collection of plastic bottles wastes across the country. The ministry of Environment and Forestry and the implementing agent Plastic collection and management company (PLASCOM) commence operationalization of the environment fees on plastic as per financial act 2024/2025 against crisis of plastic waste.”

When contacted, the Ministry of Environment and Forestry said it was preparing to respond to the planned closure of water bottling factories.

 

 

 

 

 

 

 

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