Plastic bag levy goes up 7 cent in July

The tax on plastic bags is to increase by seven cent in July as part of efforts to ensure against an increase in littering.

The tax on plastic bags is to increase by seven cent in July as part of efforts to ensure against an increase in littering.

The move, announced yesterday by Minister for the Environment Dick Roche, comes after evidence suggested that the impact of the current levy was beginning to weaken. It will see the price rise from 15 cent a bag to 22 cent.

The tax, introduced five years ago, is seen as one of the most successful anti-littering devices introduced in Ireland.

It was introduced in light of the serious litter problem being caused by the bags and saw a decrease of 90 per cent in the use of plastic bags.

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Following its introduction there was an overnight drop in use from 328 bags by each person to just 21.

In addition, a 95 per cent drop in plastic bag litter was also recorded.

Mr Roche said yesterday that the plastic bag tax was a major success and had been copied internationally.

"We need to ensure that the success story continues into the future," he said. "There has been no increase in the levy since its inception and I am anxious to ensure that its impact is not diminished."

He said that income from the levy has been increasing in the recent past and data from the levy indicated that plastic bag usage rose to 30 bags per capita during 2006.

He said he was satisfied that the 22 cent tax, the maximum allowed under the existing legislation, would have the desired effect in stemming the pattern of increased usage of plastic bags that had been evident.

A spokesman for the department said that legislation would be needed to increase the levy above 22 cent, which would be considered if the current rise did not have an impact.

The department said the delay in implementing the rise, which will come into effect on July 1st, was to provide a lead-in time to retailers to change their systems to take account of the rise.

In addition, the rise needed to coincide with quarterly reporting periods for the Revenue Commissioners, who collect the tax on behalf of the Department of the Environment.

The tax revenue has been ring-fenced for use in an environment fund, which finances local environmental projects such as recycling facilities.