A recent draft of changes to Vietnam’s Environmental Protection Law has become the subject of debate as many experts believe that proposed policies could be ineffective in the long run.
As VnExpress reports, Vietnam’s Chamber of Commerce and Industry (VCCI) recently shared their assessment of the proposed changes, particularly relating to a proposed green tax of plastic bags based on weight, deeming the regulation “unsustainable”.
VCCI added that the tax could potentially lead producers to manufacture thinner, less durable bags that are unlikely to be reused and difficult to recycle, therefore creating more waste rather than reducing plastic bag usage.
Statistics from the Ministry of Environment show that, in 2014, Saigoneers used 50 tons of plastic bags daily, twice as many compared to 2010. On the national level, Vietnam consumes around 800 tons of plastic bags a day.
Alternatively, VCCI suggested that plastic bags should be taxed individually, and green taxes should also be imposed on Styrofoam cups and boxes.
The Ministry of Finance also proposed raising environmental protection taxes on plastic and petroleum products in mid-January, VnExpress reported in a separate article.
If these taxes are put in place, the price for plastic products could increase from VND30,000-50,000 currently to VND40,000-80,000 per kilogram. Similarly, the price of petroleum could increase by up to VND8,000 per liter because of green taxes.
VnEconomy reports the rationale behind the hike in environmental taxes is to bring in more public revenue in order to make up for the loss in income due to tariff reductions, such as the decreased car taxes due to Vietnam’s membership in ASEAN.
[Photo via France 24]
