Weak green tax can lead to more single-use plastic bags
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The weight-based environmental tax can do more harm than good if businesses try to ease the burden by making and using thin plastic bags. The Vietnam Chamber of Commerce and Industry (VCCI) has weighed in on a debate involving changes to the country’s Environmental Protection Law.
Lawmakers are considering raising the environmental protection duty imposed on petroleum products by up to three times to VND8,000 per liter, and on plastic bags from the current VND30,000-50,000 to VND40,000-80,000 per kilogram, according to a proposal prepared by the finance ministry.
However, the VCCI, which represents thousands of businesses across the country, said in a statement that plastic bags should be taxed individually instead of by weight.
It said that when plastic bags are taxed based on their weight, producers are tempted to produce thin plastic bags.
While disposable, thin bags require less material, they are unlikely to be reused and are more difficult to recycle, which means these single-use bags are more harmful to the environment than thicker bags, it said.
“Current taxes do not go far enough to protect the environment,” it said.
The VCCI also said taxes should also be imposed on other plastic products like Styrofoam cups and boxes.
The environment ministry estimates that Vietnamese use more than 800 tons of plastic bags every day.
Official figures from 2014 showed that in Ho Chi Minh City, nine million, or more than 50 tons of plastic bags, were being used every day, which was twice the number from four years earlier.
Questions & Answers
Q.Which organisation is arguing against the proposed weight-based tax on plastic bags?
Which organisation is arguing against the proposed weight-based tax on plastic bags?
The Vietnam Chamber of Commerce and Industry (VCCI) has stated that plastic bags should be taxed individually rather than by weight. It represents thousands of businesses across the country and is involved in the debate.
Q.What is the VCCI's main concern about taxing plastic bags by weight?
What is the VCCI's main concern about taxing plastic bags by weight?
The VCCI is concerned that a weight-based tax encourages producers to make thinner plastic bags. These single-use bags are more difficult to recycle and are considered more harmful to the environment than thicker, more reusable alternatives.
Q.What other plastic products does the VCCI suggest should be taxed?
What other plastic products does the VCCI suggest should be taxed?
The VCCI also suggested that taxes should be imposed on other plastic products, specifically mentioning items such as Styrofoam cups and boxes. This is part of their broader proposal for environmental protection.
Q.What is the finance ministry's proposal for the new environmental protection duty on plastic bags?
What is the finance ministry's proposal for the new environmental protection duty on plastic bags?
The finance ministry's proposal suggests raising the environmental protection duty on plastic bags from the current VND30,000-50,000 per kilogram to VND40,000-80,000 per kilogram. This change is part of a wider adjustment to the Environmental Protection Law.