The Department of Environment and Natural Resources or DENR is open to the passage of a single-use plastic tax, but with the understanding that it will have a social impact on those who cannot afford other ways to carry their purchases.
DENR Secretary Maria Antonia Yulo-Loyzaga on Wednesday said the tax on single-use plastics would likely pass in Congress but that it is important to consider the impact it would have on the informal sector, vendors, and large corporations that use different types of packaging.
When asked about updates on the excise tax on single-use plastics, Yulo-Loyzaga said, “I told this to Cong. Joey (Salceda), for me, okay, it’s okay to tax it.”
“But there is a social impact of that, and that would be on people who cannot afford any other way of, say, carrying their purchases from the wet market, they will be affected,” she told Palace reporters.
The House of Representatives approved on third reading House Bill 4102 or the Single-Use Plastic Bags Tax Act in 2022.
Sachet economy
Under the bill, an excise tax of P100 would be imposed on every kilogram of single-use plastic produced locally or in imports released by the Bureau of Customs.
During the Malacañang press briefing, Yulo-Loyzaga said the DENR was also looking at ways to address the sachet economy, which is a major source of plastic waste.
She said sachets manifest the country’s economic development, but these items must be repurposed in some way.
“So that’s already ongoing in a kind of entrepreneurial innovator incubator way,” she said.
The DENR, she added, was also looking at the refilling process as a way to reduce plastic waste.
She said the process would allow people to buy products in containers that can be refilled, rather than purchasing single-use sachets.
“Hopefully, that can be on the scale of the sari-sari store as well,” Yulo-Loyzaga said. “So that’s what we’re trying to explore at this point.”
Comprehensive plan
The DENR is working with other government agencies and stakeholders to develop a comprehensive plan to address plastic waste in the Philippines.
According to the World Bank, approximately 70 percent of the value of plastic waste is lost each year.
However, if this waste is reprocessed and repurposed, she said it could contribute to the Philippine economy.
The World Bank estimates the economic value associated with the 70 percent material value of these plastics could reach about $790 million to $890 million per year.
“To achieve this economic value, we need to make some changes in how we collect, recover, and repurpose plastic waste,” Yulo-Loyzaga said.