Maldives Finance Ministry proposes a sales tax of MVR 2 per every plastic bag in the proposed MVR 37 billion budget for the year 2022.
The proposed action, if implemented, will generate up tp MVR 48 million in taxes next year for the state.
The budget was submitted to the parliament by Finance Minister Ibrahim Ameer.
This is one of the new methods of income outlined in the proposed budget
Stopping the use of single use plastic is something Maldives prioritizes. The Phase Out Plan made by the Environment Ministry in 2020 states that the government will start taxing certain products in order to discourage the use of single use plastics.
The ministry has not yet declared how they plan to collect this tax; whether it would be collected by shops and retailers, or by the importers.
According to the ministry, a number of countries already charge a tax between MVR 1- MVR 4 on plastic bags. These countries showed a decrease in single use plastic by a rate of 60 to 90 percent.
Finance Ministry projects that that if taxing for plastic bags are delayed by a quarter, the revenue collected will decrease to MVR 35 million. Similarly, if taxation starts in the third quarter, the state will receive MVR 23 million and MVR 10 million if it is collected in the fourth quarter.
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