BIR expects single-use plastics tax to raise revenue of up to P10B per year

THE GOVERNMENT expects up to P10 billion in revenue yearly from the proposal to impose an excise tax on single-use plastics, the Bureau of Internal Revenue (BIR) said.

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Commissioner Charlito Martin R. Mendoza told Business World last week that the proposed tax measure is projected to generate between P6 billion and P10 billion annually, “depending on the rate and coverage.”

The plastic tax measure is among the priority bills of the Marcos administration listed in the Common Legislative Agenda of the 20^th Congress.

The House of Representatives has nine pending bills proposing an excise tax on single-use plastics, while the Senate has four.

Finance Undersecretary Karlo Fermin S. Adriano has said that the proposal is primarily not a tax bill but an environmental measure to curb the use of plastics.

Mr. Adriano said at a P100-per-kilogram excise tax, the resulting revenue will be P8 billion. He added that plastic pollution costs the government about P70 billion per year, he added.

Analysts said the proposed excise tax on single-use plastics risks inflationary pressures and job losses.

Foundation for Economic Freedom President Calixto V. Chikiamco said the measure carries both drawbacks and advantages.