IMPOSING excise taxes and proposing a ban on single-use plastics (SUP) contradict the implementation of the Extended Producer Responsibility (EPR) framework, an industry leader argued.
Philippine Chamber of Commerce and Industry member and former President of the Philippine Plastics Association (PPIA) Danny Ngo said that the simultaneous push for excise tax on plastic bags raises concerns about policy coherence and potential economic impacts.
“These seemingly contradictory measures are not only confusing but also counterproductive, especially considering the current state of the Philippine economy,” Ngo said in a statement.
The EPR law, according to Ngo, represents a significant stride toward good waste management by placing the responsibility to recycle and proper disposal to producers.
He added that while the EPR law targets producers, the new measures focus on consumers, which, in turn, could undermine the overall goal of reducing plastic waste.
“The argument for these measures often centers on reducing plastic waste, but this ignores the broader context of EPR implementation,” Ngo said.
Last March, the Department of Finance reiterated its proposal for an excise tax on SUP. The department proposed a P100 per kilogram excise tax for SUP expected to generate over P31 billion from 2025 to 20208.
The tax will have a 4-percent annual increase starting in the third year and will apply to non-recyclable bags like “ice,” “labo” or “sando” bags.
“The government’s assumption that these taxes will generate significant revenue, mirroring the experience with sugar-sweetened beverages, is flawed,” Ngo said.
“The reality is that consumers, already facing rising costs of living, may resort to alternative, potentially less sustainable, packaging options. This could lead to increased waste generation and undermine the EPR framework’s effectiveness,” he added.
Furthermore, Ngo said that the current infrastructure in the Philippines may not support the widespread use of reusable bags, emphasizing the need for a more balanced approach to policy implementation.
Citing the situation in Bangladesh wherein a plastic ban was introduced in 2002, Ngo said there has been a notable increase in illegal polythene production in distribution.
From July 2019 to February 2021, the government of Bangladesh seized 592.223 metric tons of polythene, indicating prevailing underground operations and undermining the ban’s effectiveness.
“This situation causes substantial losses to both the government and legitimate businesses, further damaging the economy and the environment,” Ngo said.
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