Fiji’s Plastic Bag Victory Comes at a Cost

Fiji has made significant strides in its battle against plastic pollution, experiencing a remarkable 97 percent reduction in plastic bag usage thanks to a levy introduced in 2017. However, this environmental success has inadvertently led to a substantial financial impact, with revenue from the levy dropping by 85 percent, amounting to an estimated loss of $19 million.

Statistics from the Fiji Revenue and Customs Service (FRCS) illustrate the extent of this decline. The annual revenue from the levy reached its peak at $7.3 million in 2019 but plummeted to $785,710 in 2020 and further fell to just $202,495 by 2023. The decrease follows several incremental increases to the plastic bag levy and significant legislative changes, including the repeal of the Environment and Climate Adaptation Levy (ECAL) Act in August 2022.

“The reduction from 14 million plastic bags to only 400,000 over the past six years highlights a monumental achievement for the environment,” stated Udit Singh, CEO of FRCS. “However, it’s important to recognize that this has also contributed to an 85 percent drop in revenue.”

Originally, the levy started at 10 cents per bag, increased to 20 cents in 2018, and hit 50 cents by early 2020. Despite the financial challenges posed by this initiative, it has successfully fostered more sustainable shopping practices and reduced plastic waste throughout the nation.

Fiji remains committed to its environmental goals, with Mr. Singh affirming the ongoing efforts to lessen dependence on single-use plastics and promote eco-friendly alternatives. This dedication towards sustainability, while additionally focusing on alternative revenue avenues, reflects a promising path forward for both the environment and the economy.

In summary, Fiji’s action against plastic pollution marks a commendable environmental milestone, even as the nation faces financial repercussions. The emphasis on reducing single-use plastics speaks volumes about the country’s commitment to sustainability. While the challenges are evident, the potential for positive change and a greener future remains bright.