Industry groups oppose tax on single-use plastics

INDUSTRY GROUPS on Tuesday pushed back against a proposal to impose an excise tax on single-use plastics, saying the suggested levy is unfair, could make goods expensive and lead to job losses.

- By Kenneth Christiane L. Basilio

"The proposed tax is discriminatory," Benjamin So Chua, president of the Philippine Plastics Industry Association, told lawmakers at a House of Representatives hearing. "And it is regressive, increasing consumer costs disproportionately on low-income households."

There are nine pending House bills proposing an excise tax on single-use plastics, with the tax rate ranging from P100 to P150 per kilogram of plastic bags. The excise tax would then be increased by 4% every year to discourage the use of single-use plastics.

"The market price of our plastic products is P90 per kilo... if you add another P100 per kilo, that will more than double the price. When we add P150, it will become around three times the cost," Mr. Chua said.

"This will definitely result in demand destruction and loss of employment to our industry," he added.

The Philippines has one of the cheapest tax rates for single-use plastics compared to other countries at P0.40 per bag, the Department of Finance (DoF) said last year.

However, the Philippines is considered one of the biggest sources of plastic waste in the world. World Bank data showed the Southeast Asian nation as the third-largest contributor of mismanaged plastic in the ocean annually.