The government of the Philippines continues to push forward with its proposal to introduce an excise tax on single-use plastic bags.
The bill, which would introduce a levy of PHP 100 (€1.64) on firms for every kilogram of single-used plastics produced or imported, passed in the Philippine’s lower house of Congress in November 202. It still needs to be approved by Senate before it is sent to President Ferdinand Marcos Jr for approval.
The draft bill only covers single-use plastics bags that are not recycable, such as “ice” (primarily used for selling ice), “labo” (thin film bags used for wrapping unpacked fresh food), or “sando bags” (grocery store bags), with or without handles. The price of labo bags per piece would increase from PHP 0.47 cents to PHP 0.82, while sando bags would be priced at PHP 0.51 to PHP 0.91 each.
The PHP 100 levy on manufacturers and importers would be imposed with a 4% annual indexication beginning on the third year of implementation. The measure is estimated to generate PHP 31.52 billion in revenues between 2025 to 2028. The funds are earmarked for the Department of Environment and Natural Resources’s solid waste management programme in municipalities.
The country’s Department of Finance (DOF) conducted a meeting with industry stakeholders in early March to address issues of fairness. DOF Fiscal Policy Karlo Fermin S. Adriano emphasised that “the measure does not single out the plastic industry since the government has already been implementing this strategy on goods such as tobacco, alcohol, and automobiles to kerb consumption and mitigate social costs,” a DOF statement reads.
The DOF called the proposed measure a ‘win-win solution to address climate change’. It seeks to kerb the high volume of mismanaged plastics in the country and serve as the Philippines’ contribution to the global movement of reducing pollution and adopting more sustainable practices while raising revenues to spur economic growth. According to the World Bank, the Philippines is the third largest contributor of mismanaged plastic entering the ocean each year with 750,000 tonnes.
“It is the government’s duty to raise awareness on the impact of non-recyclable plastics and the irreversible effects of climate change,” said Finance Secretary Ralph G. Recto. “I believe this is where strong policy intervention is needed. This is a low-hanging fruit that has been on the table for more than a decade. I am confident that our legislators will support this measure,” he added.
The stakeholder briefing was attended by representatives from the Philippine Plastics Industry Association (PPIA) and Philippine Alliance for Recycling and Materials Sustainability (PARMS), amongst others.