The Department of Finance (DOF) lauded the decision of the House of Representatives to approve on final reading a proposed measure seeking to impose taxes on single-use plastics.
In a statement, Finance Secretary Benjamin E. Diokno said the swift approval of House Bill (HB) 4102 or the Single-use Plastic Bags Tax Act is the country’s contribution to the global movement to reduce pollution.
“I thank the House under the leadership of Speaker Ferdinand Martin Romualdez for exercising swift and careful judgment on the approval of the single-use plastic bag tax act,” Diokno said.
House approval of single-use plastic tax lauded
By Chino S. Leyco
Last Nov. 14, the lower House approved on third reading HB 4102 that once passed into law, will impose an excise tax of P100 on every kilogram of single-use plastics removed from the place of production or released from custody of the Bureau of Customs.
“This is our contribution to the global movement to reduce pollution, while raising revenues needed to manage economic risks and rehabilitate the country—like hitting two birds with one stone,” Diokno said.
The price of a pack of labo bags is estimated to increase by around 75 percent during the first year of implementation, with an estimated decline in volume by around 24.7 percent.
While the retail price of sando bags will increase by 79.3 percent, which is expected to result in a 26.1-percent decline in volume.
The proposed excise tax will increase yearly by four percent beginning 2026, and incremental revenues collected will be allocated to the Department of Natural Resources' programs for the implementation of Republic Act 9003.
A 70 percent assumption in collection efficiency will translate to estimated revenues of P38.06 billion for five years, or 2023 to 2027, of implementation.
If passed into law, the bill will address the long-standing issue of plastic waste management by promoting the use of recyclable packaging, and ending the “throw-away culture”.
Studies have shown that market-based instruments, such as taxes aimed at discouraging the use of single-use plastics, have proven to be effective in curtailing plastic waste generation.
In the ASEAN region, Brunei and Vietnam have already imposed taxes on single-use plastic bags. As a result, Vietnam saw a 23 percent reduction in daily plastic consumption—from 746 tons a day in 2014 to 577 tons in 2017.
Meanwhile, Washington DC, San Francisco, and Seattle significantly curbed plastic consumption by 85 percent, 72 percent, and 78 percent, respectively as a result of taxing single-use plastics.
According to the World Bank, the Philippines, China, Indonesia, Thailand, and Vietnam account for 55 percent to 60 percent of plastic wastes entering the oceans. SUPs were also found to be among the primary wastes collected during DENR coastal clean-up campaigns.
The bill was transmitted to the Senate on Nov. 15, 2022.