Under the new section, an excise duty of PHP20 is levied for every kilogram of plastic bag removed from the production site or released from the custody of customs. (File Photo: Gabe Pierce / Unsplash)
MANILA – A House panel on Monday approved a measure to impose a PHP20 excise duty per kilo of disposable plastic bags.
The House Ways and Means Committee, chaired by Albay Rep. Joey Salceda, approved the committee’s report on the superseded bill to House Bill 178, which seeks to add a new section to be named Section 150-C of the National Internal Revenue Code of 1997 is designated.
Under the new section, an excise duty of PHP20 is levied for every kilogram of plastic bag removed from the production site or released from the custody of customs.
In the bill, the plastic bag is defined as a secondary plastic made from synthetic or semi-synthetic organic polymer, commonly referred to as “Labo” or “Sando” bags, with or without a handle, and used as packaging for goods or products.
Salceda said the proposed excise tax would raise around PHP 4.8 billion in the first year of implementation.
He said the revenue from the additional tax would help fund government waste management programs under Republic Act 9003 or the Ecological Solid Waste Management Act of 2000.
The proceeds would be used to implement the local authorities’ waste management plans, including the purchase of land for the construction and operation of sanitary landfills.