Excise tax of 20 pesos per kilo on plastic bags approved by House panel – Manila Bulletin

The government may soon levy a 20 peso per kilo excise tax on single-use plastics after the House Ways and Means Committee on Wednesday (August 17) approved a measure to impose a tax on the use of plastics .


The measure “aims to impose an excise tax of twenty pesos (P20.00) for each kilogram of plastic bag removed from the place of production or released from the custody of the Bureau of Customs (BOC)”.

“The proceeds allocation, which is estimated at 1 billion pesos per year, will be used for the implementation of solid waste management,” said House Ways and Means President Joey Sarte Salceda of the 2nd District. from Albay.

Internal Bill 9171 or Plastic Bag Excise Tax will impose a 20 peso per kilo tax on single-use plastic bags in supermarkets, shopping malls, stores, retail outlets and d other establishments.

Earlier, Finance Secretary Benjamin Diokno expressed support for the measure to tackle worsening climate change and pollution problems.

The Ministry of Finance (DOF) said the government could collect an additional 923 million pesos in revenue if the measure is enacted.

READ: Diokno lists proposed measures to accelerate PH’s economic recovery

The House Tax Committee also passed the Ease of Paying Taxes Act (EOPT), which will reduce document requirements, allow taxpayers to file their returns at any district revenue office, and eliminate tax filing fees. annual registration of taxpayers.

It will also institute a taxpayer bill of rights and appoint a taxpayer advocacy office.

“The bill aims to simplify the filing and payment of taxes and to address the burden of tax compliance, which affects our small and medium-sized businesses and discourages our investors. We hope this can reduce the tax gap, estimated at 909 billion pesos in 2018,” Salceda said.

“EOPT seeks to segment taxpayers, simplify forms and requirements for small taxpayers; allow the portability of the declaration and payment of taxes; harmonize documentation to justify VAT credits and institutionalize a declaration of taxpayer rights.

The panel also created the technical working groups for the mining tax regime and the law on taxation of passive income and financial intermediaries (PIFITA), which the panel is expected to address next week.

This is the first step in the House panel’s commitment to pass all of Speaker Ferdinand Marcos Jr. and DOF’s priority actions this month.

“We are going to finish the measurements. This is our commitment to the Speaker and the leadership of the Chamber. The committee will work harder than it did in the last Congress to achieve the SONA macro-fiscal goals clearly articulated by the President,” the legislator said.

“Hopefully by next week, the House tax panel will be done with everything, so we can proceed with our own tax measures as well as administrative and oversight matters,” Salceda added.



Bryce K. Locke