DOF Lauded House Approval On Single-use Plastic Tax

The Department of Finance (DOF) commended the House of Representatives’ approval of the final reading of a proposed measure seeking to impose taxes on single-use plastics.

Finance Secretary Benjamin E. Diokno said in a statement the immediate approval of House Bill (HB) 4102 or the Single-use Plastic Bags Tax Act is the country’s contribution to reducing pollution.

Once passed into law, HB 4102 will impose an excise tax of ₱100 per kilogram of single-use plastics removed from the place of production or released from the 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 proposed excise tax will increase yearly by 4% beginning 2026, and incremental revenues collected will be allocated to the Department of Natural Resources programs for the implementation of Republic Act 9003.

Implementation is expected to have a 70% collection efficiency and estimated revenues of ₱38.06 billion from 2023 to 2027.

The bill will also address the issue of plastic waste management by promoting the use of recyclable packaging, and ending the “throw-away culture”.

Several 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 reducing plastic waste generation in ASEAN countries like Brunei and Vietnam, as well as in the US.

Source: Manila Bulletin