5c Tax on plastic bags does reduce overall use!

Many Countries, states and cities worldwide have imposed a ban or charge for plastic bags in an attempt to reduce consumer use of the plastic monstrosities that pollute rivers, waterways, streets and as is most likely ending up in landfill sites. Europe led the way with cash back incentives for reusing bags, charging a fee for bags or banning plastic bags outright, but the USA is slowly catching up and heading into the fray in an attempt to curtail the public’s use of plastic bags.

Washington DC is one city that sought to improve their environmental impact by imposing a 5c charge for plastic bags in January 2010, already this 5c charge on plastic bags has had an astounding effect. In just January 2010 alone the 5c tax on plastic bags has reaped in $150,000 to aid in the clean up for the Anacostia River! According to the D.C. Office of Tax and Revenue reports were that approximately 22.5 million bags were being issued each month in 2009, yet in January 2010 when the bag tax was introduced just 3 million bags were issued.

Council member Tommy Wells (D-Ward 6), sponsor of the bag tax bill, said
the new figures show that city residents are adapting to the law far
more quickly than he or other city officials had expected.

The tax, one of the first of its kind in the nation, is designed to
change consumer behavior and limit pollution in the Chesapeake Bay
watershed. Under regulations created by the D.C. Department of the
Environment, bakeries, delicatessens, grocery stores, drugstores,
convenience stores, department stores and any other “business that sells
food items” must charge the tax on paper or plastic bags.

District officials has estimated that the bag tax would generate $10
million over the next four years for environmental initiatives, but January’s figures suggested that it might fall short of the revenue projections. Really this is a double edged sword, whilst the revenue for the River Clean-Up would be a great environmental community project it would mean that there were still many millions of plastic bags being put into circulation which is not a good thing. More likely that consumers are going to be more inclined to avoid the tax altogether by reusing bags, or investing in lifetime (fabric) reusable bags instead, thus reducing the revenue. The real test will be to see more cities following suit. Either way it’s a win win on the war against plastic bags and a bonus for the planet!

Source: Washington Post

Image source: Topsy at Waygood @ Flickr

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