House approves new taxes on single-use plastic bags on final reading

The House of Representatives on Monday approved a bill that imposes at least a P100 tax for every kilogram of single-use plastic bags removed from the place of production or released from the Customs Bureau's custody.

This developed after House Bill 4102 or an Act Imposing Excise Tax on Single-use Plastic Bags, amending for the purpose Section 288 and adding a new section 150-c in the National Internal Revenue Code of 1997, garnered 255 yes votes, three no votes and zero abstentions during Monday’s plenary session.

The bill states that the P100 initial tax per kilo of single-use plastic bags will be increased by 4% every year effective on January 1, 2026, through revenue regulations issued by the Secretary of Finance.

“The plastic bags tax is in line with the country’s efforts to fight ocean pollution, especially as we are now recognized ignominiously as the world’s biggest ocean plastic polluter,” House Ways and Means panel Chairperson Joey Salceda of Albay said in a statement.

“[This measure is also passed] to encourage the utilization of environment-friendly alternatives to plastic bags,” the committee report on the measure added.

The bill defines single-use plastic bags as secondary level plastics made of synthetic or semi-synthetic organic polymer such as "ice," "labo," or "sando" bags, with or without handle, used as packaging for goods or products.

The filing of a return and payment of the tax will be under the jurisdiction of the National Internal Revenue Code. Applicable penalties under the same code would be imposed on violators.

Revenues from the tax on single-use plastic, on the other hand, will be allocated to programs of the Department of Environment and Natural Resources (DENR) for the implementation of Republic Act No. 9003, otherwise known as the Ecological Solid Waste Management Act of 2000, in municipalities.

The bill also mandates the Secretary of Finance, upon recommendation of the commissioners of internal revenue and customs, and in consultation with the DENR, to issue implementing rules and regulations of the measure. — BM, GMA Integrated News