VCCI proposes higher tax rate on plastic bag

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In its official feedback on the amendment and supplement to the Law on Environmental Protection submitted to the Ministry of Finance, VCCI stated that plastic bags in particular and plastic products in general have been universally proven to leave a long-time negative impact on the environment, and that so it is necessary to raise the tax rate on that environmental polluter to control the use of plastic products.

Plastic products have been universally proven to leave a long-time negative impact on the environment.

To support its argument, the organization then cited some tax rates, which are imposed on plastic bags by other countries in the regions and world. For example, the UK imposes a tax rate of 15 cent (4,000 VND) on a plastic bag while customers pay 0,05USD (1,050 VND) per plastic bag in Hong Kong, and 2 kroon (3,000 VND) per plastic bag in Estonia.

The VCCI also revealed some other international experiences in controlling the use of plastic bags, saying that some countries including China prohibit the manufacture, sale and use of thin plastic bags.

In Vietnam, the current environmental tax on plastic bags still remains low at 30,000 VND-50,000 for one kilogram of plastic bags (approximately 200-400 VND/bag). VCCI proposed the Finance Ministry first to revise tax rates based on the number of bags (not on the weight of plastic bags), to avoid the use of thin plastic bags.

Finally, VCCI suggested that the Ministry of Finance impose taxes on plastic polystyrene boxes and other plastic products which badly impact the environment.