Plastic makers oppose hefty excise tax on SUPs

CEBU, Philippines —  “Don’t discriminate against plastic,” this is a call made by Benjamin Chua, president of the Philippine Plastics Industry Association (PPIA), amid the government’s proposed P100-per-kilogram excise tax on single-use plastic bags (SUPs).

In an interview with Chua, who was in Cebu recently for the VisMin Hotel and Foodservice Suppliers Show and the VisMin Printing, Packaging and Plastics Show 2024, he said PPIA is strongly opposing the Department of Finance (DOF) proposal to put an expensive excise tax on SUPs.

“We are opposing it. During the public consultation, I told them that our resins only cost around less than P80. If they slap another P100 that will result in more than twice as expensive products,” said Chua.

The proposed measure, according to the DOF, aims to address the high volume of mismanaged plastic in the Philippines. It represents the country's effort to contribute to the global movement toward reducing pollution and adopting more sustainable practices while generating revenues to stimulate economic growth.

According to Chua, the industry, through the PPIA does not approve the DOF proposal, saying the industry’s condition is for them “not to discriminate against plastics.”

“Plastics are singled out but the alternatives, which for us, are not viable and sustainable in the long run are not being included in the list,” Chua explained.

DOF proposal includes SUP bags that are not recyclable, such as “ice,” “labo,” or ”sando” bags with or without handles.

The government expects to generate P31.52 billion in revenues from 2025 to 2028, which will be used to fund the Department of Environment and Natural Resources' solid waste management program in municipalities.

On the other hand, Chua said PPIA is strengthening its recycling campaign on plastics among consumers.

“We are continually educating the public regarding single-use plastics. For us, we want it to be a science-based approach. We want lifecycle assessment to be the basis because there is a law in the Philippines that if ever there is an alternative, it should not be more than 10 percent expensive,” he explained.

He said that the lifecycle of plastics ranges from three to five years. “If it (plastic) is going to be used repeatedly, we just have to make it a little thicker. In the Philippines, whenever they see a sando bag they think it is already for single-use but in reality, it is not.”

PPIA which has more than 180 member companies, also produces biodegradable plastics when required by their clients. For those that don’t require it, they focus on recycling.

Chua said his company, for instance, buys 15 tons of used plastics every day. PPIA, he said, has many member recyclers.

“Our recycling capacity is big enough. So long as there is discipline in segregation, it will be easier for us to recover and recycle,” Chua said adding that PPIA member companies are also compliant with the Extended Producer Responsibility (EPR) Law.

“Performance-wise, we’ve exceeded the 20 percent target,” Chua said.

In the Philippines, the EPR law requires companies with total assets of over P100 million, called Obliged enterprises (OEs), to adopt and implement policies for the proper management of plastic packaging waste, with auditing and annual compliance reports to be submitted.

In the first year of EPR implementation, OEs must divert 20 percent of the plastic waste they generate by the end of 2023. This rate will progressively increase to 80 percent by 2028.  (CEBU NEWS)