Fiji has made significant strides in reducing plastic pollution, achieving a remarkable 97 percent decrease in plastic bag usage since implementing a levy in 2017. This achievement, however, has not come without financial implications. According to data from the Fiji Revenue and Customs Service (FRCS), revenue from the plastic bag levy has shrunk dramatically by 85 percent, resulting in an estimated loss of $19 million.
Initially, the levy generated $7.3 million in revenue in 2019, but this figure plummeted to $785,710 in 2020 and fell further to just $202,495 by 2023. This steady decline follows multiple levy increases and legislative changes aimed at reducing plastic consumption, including the repeal of the Environment and Climate Adaptation Levy (ECAL) Act in August 2022.
FRCS chief executive officer Udit Singh highlighted the significant shift in consumer habits, stating, “From 2017 to 2023, plastic bag usage has decreased from 14 million pieces to just 400,000.” While this marks a significant victory for environmental conservation, it also shows the correlation with falling revenue.
The levy began at 10 cents per bag in 2017 and saw increases to 20 cents in 2018 and 50 cents by January 2020. Despite the fiscal challenges, the policy has fostered sustainable shopping practices and has been a pivotal element in reducing plastic waste nationwide.
Fiji remains committed to enhancing its environmental sustainability efforts, with Mr. Singh emphasizing the ongoing focus on decreasing reliance on single-use plastics and promoting eco-friendly alternatives. This determination reflects a growing global awareness of environmental issues and the need for sustainable practices.
In summary, while Fiji faces financial hurdles due to reduced levy income, the substantial decrease in plastic bag usage showcases a successful commitment to environmental stewardship, paving the way for a more sustainable future.
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