Published on 01 Oct 03
by "AUSTRALIAN TAX FORUM" JOURNAL ARTICLE
An environmental levy recently introduced in Ireland imposes a tax at the point of retail sale on lightweight plastic bags used by shoppers, previously supplied free of charge by retailers. This paper assesses the measure in terms of its environmental effectiveness and its ability to raise sufficient revenue net of collateral costs to reduce distortionary taxes. Post-implementation surveys of retailers and shoppers are presented, covering issues of implementation and attitudes to alternatives. Difficulties identified by respondents are analysed. Finally suggestions are made for modifications to the levy that would enhance its effectiveness if introduced in other jurisdictions.
Sheila is a Lecturer in the Accounting & Finance department of the University of Limerick, Ireland.
Current at October 2003