Reducing the plastic bag fee to MVR 50 cents!

MP Saleem revealed that the government had submitted a bill to address the challenges arising from the plastic bag tax in March 2022. However, the matter was only brought up for discussion in April of this year.

In recent years, the Maldives has embarked on a transformative journey toward becoming a greener and more environmentally conscious nation. At the forefront of this endeavour is the nation's commitment to banning single-use plastics, complemented by the introduction of the Waste Management Act at the start of 2022. These initiatives not only reflect a dedication to environmental sustainability but also a profound respect for the Maldives' breathtaking natural beauty.

The Maldives had been gradually working towards eliminating single-use plastics by introducing alternative imported goods into the market. However, the introduction of the Waste Management Act marked a significant leap forward. Under this comprehensive legislation, citizens were encouraged to segregate their waste, aligning with global efforts to combat plastic pollution.

As part of this environmental campaign, the Maldivian government also introduced a plastic bag tax, which imposed a charge of MVR 2 on each plastic bag at checkout counters. The aim was to incentivize people to embrace eco-friendly alternatives, such as paper or cloth bags, during their shopping trips. While these initiatives were well-intentioned, the road to implementation was not without its challenges.

The initial phase of waste segregation faced difficulties, with many households struggling to adapt. Limited resources and insufficient education, combined with the added cost of purchasing bin liners and alternative bags, proved to be barriers, particularly for low-income households.

From the outset, citizens expressed concerns about the high cost of plastic bags and the potential burden on households. However, it was not until recently that action was taken to address these concerns.

Nearly a year after citizens adjusted to the higher cost of plastic bags, the Maldivian Parliament has revisited the issue, considering a reduction in the charge to a more manageable MVR of 50 cents.

Ahmed Saleem, a Member of Parliament (MP) representing the Maldives Democratic Party (MDP) for Hoarafushi, provided insight into the situation. He revealed that the government had submitted a bill to address the challenges arising from the plastic bag tax in March 2022. However, the matter was only brought up for discussion in April of this year. As the first session of this year concluded and MPs went on leave, the bill had not yet been sent to the committee for further deliberation.

In response to the difficulties faced by citizens, MP Saleem has proposed a series of amendments aimed at striking a balance between environmental concerns and practical challenges:

In a move to amend the many difficulties that were faced within the past year due to the bill, MP Saleem proposed a few amendments which include:

  • Tax exemption on bags purchased for the purpose of containing frozen meat or wool for purposes such as bin liners
  • Introduce a uniform tax so that retail shops and cafes are not administratively burdened
  • Reduce the bag fee to 50 cents; and review the fee annually
  • Eliminate the requirement for businesses to pay fees twice; Salim proposed that the fee paid by GST-registered persons or businesses should be deducted from the fee charged when selling bags
  • Run an awareness campaign to show the public a non-plastic approach

With these amendments, the actual aim behind the initiative might be accomplished much better as the initial stages of implementing these measures under the Waste Management Act showed that there was a big information gap when it came to making environmentally conscious choices in the Maldives. While charging a tax in order to reduce the choice of single-use plastic in the country might seem like a smart idea, there are several steps that need to be taken in order to reach this stage that the Government needs to consider.

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