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Govt considering plastic bags levy

23rd October 2003

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Government is considering the introduction of an environmental levy on certain types of plastic bags, MPs heard yesterday.

This emerged during a briefing by National Treasury tax policy chief director, Martin Grote, to Parliament's finance portfolio committee on aspects of the draft Revenue Laws Amendment Bill.

In his presentation, distributed to members, he states the existing Customs and Excise Act will be amended "to provide for a levy (an 'excise duty') on certain types of plastic bags".

This would be imposed on the basis of weight, he says.

"This will facilitate administration, and it would also be more equitable, as bags of various sizes will be treated equally.

"The effective levy per bag would thus depend on the size/weight of the bag".

The decision to impose a levy "originates from an agreement between the department of environmental affairs and tourism, business, and labour".

According to the document, the levy "will only be applicable on certain types of plastic bags manufactured in South Africa or imported into South Africa".

Some of the revenue generated would be used for waste management.

No further details were given, and the National Treasury was not immediately available for comment. – Sapa.
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