Government urged to rethink proposed tax on single-use plastic

August 26, 2024 | 12:00am

MANILA, Philippines — The government should reconsider the proposal to impose excise tax on single-use plastic bags and take into account the country’s readiness and unintended consequences of the implementation of such to the economy, according to a former plastics industry leader.

“The imposition of an excise tax on single-use plastic bags in the Philippines can have far-reaching consequences that must be carefully considered,” Danny Ngo, former president of the Philippine Plastics Industry Association said in a Viber message.

The proposed Excise Tax on Single-Use Plastics bill is among the government’s priority legislative measures for approval within the 19th Congress.

House Bill 4102 or the proposed Single-Use Plastic Bags Tax Act approved by the House of Representatives on third reading, seeks to impose an excise tax of P100 per kilogram of bags made of single-use plastic removed from the place of production or released from custody of the Bureau of Customs to encourage sustainable consumption and production and reduce plastic waste generation.

Ngo said the proposal, however, contradicts the Extended Producer Responsibility (EPR) framework that is in place.

Under the EPR Act, large enterprises are required to implement measures to reduce or recover for reuse, recycling, treatment or proper disposal of the plastic packaging waste they release to the market.