One tax cut you will get

The National government has decided not to go ahead with its plans to impose a 5 cent levy on plastic bags- rather a shame given how easy it is to accumulate them if you’re not conscious of exactly how wasteful they are.

Looks like Nick Smith is beginning to discover that it’s not as easy as he thought to be Minister for the Environment, where even the small gestures get scrapped. It’s slightly strange that the PM axed it given how cash-strapped his government is.


2 thoughts on “One tax cut you will get

  1. Not sure how and where the money for the bags was going to the “cash strapped” government (except the GST content).

    All proceeds go to the supermarket chains. Who already charge for the bags in their overheads (overheads recovered in the pricing structure).

    So we would pay twice for the bags.

    Sure as eggs are eggs, the prices at the supermarket will not come down if we bring our own bags to take the groceries home in.

    Has anybody questioned the 1 billion bags used by supermarkets per annum quote? For 4 million people that is a mountain of bags each (4000?). Something not right there for sure.

  2. Yeah, I believe a compulsory surcharge was the favoured proposal on second thought, rather than a levy. (strangely enough, as that creates a perverse incentive to “sell” you the bags)

    For 1 billion bags, you’d need 250 bags each per year, or you’d need to average slightly under five plastic bags a week per person. It’s possible it’s a figure inflated by excessive shopping of a few, but it sounds more like an overall retail figure than one for supermarkets.

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