ISME Wants Tax Relief On Plastic Bag Tax

by Jason Gorringe, Tax-News.com, London

05 March 2002

The Irish Small and Medium Enterprises Association (ISME) called last week for the compliance costs of imposing the new 15 cent plastic bag tax to be offset against tax liabilities.

In a statement released on Friday, the small business group argued that: 'The introduction of a levy of 15 cents on plastic bags from Monday will exacerbate an already difficult situation and will have a very significant impact on retailers.' It added that: 'While the levy itself must be passed on to customers, retailers will be required to bear the not inconsiderable costs associated with its introduction.'

The ISME also pointed out that by giving a little ground on this issue, the Irish Government could: 'ensure the commitment of the small business community to any future environmental initiatives.'

Although it has been estimated that the new 'plastax' will bring in around Euros164m in additional revenue, the Irish Government has stressed that the levy should not be considered as a stealth tax. 'The primary purpose of this levy is not to generate revenue, but to change consumer behaviour,' Environment Minister Bobby Molloy explained. 'I want to see a significant reduction in the use of plastic shopping bags and a subsequent reduction in the number of bags that end up as litter.'

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