Fiji has made impressive strides in reducing plastic pollution, achieving a remarkable 97 percent decrease in plastic bag usage since the implementation of a plastic bag levy in 2017. This environmental success, however, has not come without financial implications.
Following the levy’s introduction, the revenue collected has seen a dramatic plunge of 85 percent, leading to an approximate loss of $19 million. According to the Fiji Revenue and Customs Service (FRCS), annual revenue from the levy peaked at $7.3 million in 2019 but fell sharply to $785,710 in 2020 and further reduced to just $202,495 by 2023.
The decline in revenue corresponds with various increases in the levy rates and legislative measures aimed at limiting the use of plastic bags, culminating in the repeal of the Environment and Climate Adaptation Levy (ECAL) Act in August 2022.
FRCS Chief Executive Officer Udit Singh emphasized that while the reduction in plastic bag usage from 14 million bags to only 400,000 represents a significant environmental milestone, it also highlights the stark financial consequences of such proactive measures.
The levy, which started at 10 cents per bag in 2017 and increased over time to 50 cents by January 2020, has effectively fostered sustainable shopping habits among the population while significantly reducing plastic waste.
Despite the challenges, Fiji remains committed to enhancing environmental sustainability. Mr. Singh stressed the importance of continuing efforts to diminish reliance on single-use plastics and promote eco-friendly alternatives.
This journey reflects that while environmental initiatives may come with financial challenges, the broader goal of protecting the planet and encouraging sustainability is a win for both the environment and future generations.
By focusing on sustainable practices, Fiji sets an example for others, emphasizing the importance of long-term ecological benefits over immediate financial gain.
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