21 water bottling factories in Ethiopia have halted production citing the surge of raw material prices, and the burden of excise tax on bottled water.

The factories are in discussion with the Ministry of Industry, the Ministry of Trade and Regional Integration, as well as Customs Commission, and the Addis Ababa Trade Bureau.

During their discussion, the factories, in addition to the sharp increase in prices of raw materials and excise tax levied on bottled water that considers it a luxury, raised not being given a priority when requesting foreign exchange, and not being given due consideration to their invoices by the customs authorities as challenges to their work.

Retailers also contribute to price inflation by charging up to three times what bottled water costs after production, the manufacturers complained.

In addition to the 21 factories, other water bottling factories are also not functioning in their full capacity, it has been learned.

Source: FBC (Amharic)