PPIA president Danny Ngo proposes to strengthen plastics recycling instead of taxing it

According to the Philippine Plastics Industry Association (PPIA), imposing a ₱20 excise tax on plastic bags will only burden companies, specifically small businesses like sari-sari stores that use them for their everyday operations.

The group has stated it is strongly opposed to the Plastic Bags Tax bill, which would levy a ₱20 excise tax for every kilo of locally produced and imported plastic bags.

The bill was passed after a second reading earlier this month and is inching closer to becoming a law.

One of the bill’s proponents, Nueva Ecija First District Rep. Estrellita Suansing, said the tax would allow the government to collect an annual revenue of ₱4.8 billion.

“The bill encompasses not only us, but all industry users of plastic bags as primary and secondary packaging—processed or frozen foods, hygiene and healthcare, medical and pharmaceutical products, and all agricultural and agro-industrial commodities, including products for export, also as a material for transporting goods.

All domestic, retail, and microbusinesses that use plastic carrier bags and all consumers will shoulder the higher costs. This does not spare even the smallest outlets like sari-sari stores,” said Danny Ngo, PPIA president.

The Associated Labor Unions-Trade Union Congress of the Philippines and the Federation of Philippine Industries (FPI) have also voiced their opposition to the bill.

Ngo also said it would be better to legislate laws that would strengthen recycling rather than taxing the product.

The Philippines loses $890 million, or around ₱42 billion, a year “when recyclable plastic products are discarded rather than recycled into valuable materials,” according to a World Bank report.

“We in the industry are one with the government when it comes to saving the environment. For more than four decades, the plastic industry has been recycling waste plastics, but could not fully realize its goals due to gaps in the value chain,” said Ngo.

Ngo said the industry would need the help of the government, groups, and consumers in order to fulfill its goals.

SOURCE: Inquirer