Plastic Bag Tax Hailed As Success In Ireland

by Jason Gorringe, Tax-News.com, London

05 March 2003

Reports released celebrating the first anniversary of the introduction of the plastic bag tax in Ireland have proclaimed the initiative a resounding success.

The 15 cent levy was introduced in March 2002 in order to combat the rising tide of plastic bags littering the Republic's countryside and roads, and has reportedly reduced their usage by around 90%, in addition to raising an extra 8 million euros in revenue for the government in its first year.

In light of the success of the environmental levy- which has caught the imagination of several other countries, including the UK and Australia, since its introduction - the Irish authorities are said to be considering extending the tax to plastic bottles, ATM receipts and chewing gum, all of which have been identified as major sources of litter in Ireland.

However, such proposals were condemned by Green Party leader Trevor Sargeant at the weekend as 'taxation by stealth'.

He argued that unless the 'polluter pays' penalties are offset by reductions in labour-related taxes, they are simply a hidden means of raising money for the Exchequer.

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