Designed to rein in their rampant consumption of 1.2 billion plastic shopping bags per year, the tax resulted in a 90% drop in consumption, and approximately 1 billion fewer bags consumed annually.

To complete the win-win scenario, approximately $9.6 million was raised from the tax in the first year, which is earmarked for a “green fund” established to benefit the environment.

Several other countries and cities around the world are now considering implementing a similar tax, including UK, Australia and New York City.

How does it work?
First of all, the purpose is to change consumer behavior, not to generate revenue moving habits from mindless consumption, to reducing and reusing.

In a nutshell, it’s a simple market-based solution in the form of a consumption tax, individuals pay a tax of $.15(15 US Cents) per plastic bag consumed at check out.

Retailers save money since they only have to stock a smaller quantity of bags (in Ireland, on average they were spending $50 million a year on single-use plastic bags before the tax). Many retailers are also now benefiting from selling reusable bags.

Administration is straightforward— retailers keep simple records on purchasing and receipts, while the government monitors retailer compliance and collects revenue.

What is exempt?
In Ireland, exemptions from the tax include heavier weight reusable plastic bags; bags used for meat, fish, or poultry; bags for unpackaged produce, ice, or other foods without packaging.
What are the results?

Consumption of plastic bags has dropped approximately 90%, from 1.2 billion to 230 million per year.

Litter has been dramatically reduced.
Approximately 18,000,000 liters of oil have been saved due to reduced production of bags.

Reusable bags, rather than paper, are taking the place of plastic disposables.

Weaker plastic bag companies went out of business, while others have benefited by seizing the opportunity to make re-usable shopping bags.
Summary:

The PlasTax is a major success in the Republic of Ireland. Consumers have widely adopted using reusable shopping bags and retailers no longer incur the costs associated with giving away free bags.
 

Home | Contact us | Links | Archives