Fiji’s substantial efforts to combat plastic pollution have led to an impressive 97 percent reduction in plastic bag usage. This significant environmental achievement, however, has come with a notable financial toll. Since the implementation of a plastic bag levy in 2017, government revenue from this policy has seen a dramatic decrease of 85 percent, equating to an estimated loss of $19 million.
According to the Fiji Revenue and Customs Service (FRCS), the revenue from the plastic bag levy reached its peak at $7.3 million in 2019. Unfortunately, this figure saw a steep decline, plummeting to $785,710 in 2020 and further down to a mere $202,495 by 2023. This downturn is attributed to a series of levy increases and legislative amendments aimed at further discouraging plastic bag use, culminating in the repeal of the Environment and Climate Adaptation Levy (ECAL) Act in August 2022.
FRCS Chief Executive Officer Udit Singh pointed out that while the decrease in plastic bag usage—from 14 million bags in 2017 to just 400,000 in 2023—marks a major success for environmental initiatives, it also highlights a significant drop in revenue.
Initially set at 10 cents per bag in 2017, the levy increased to 20 cents in 2018 and eventually to 50 cents by January 2020. Despite the financial repercussions, this policy has stimulated sustainable shopping practices and contributed to reduced plastic waste throughout the nation. As Fiji continues to focus on environmental sustainability, Mr. Singh stressed the importance of reducing reliance on single-use plastics while promoting eco-friendly alternatives.
This shift in consumer behavior is a hopeful sign that society is moving toward a more sustainable future, reflecting a growing awareness of environmental issues. Although financial struggles may pose challenges, the long-term benefits of reduced plastic waste may ultimately outweigh the costs, creating a healthier environment for future generations.
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