The Philippine Plastics Industry Association (PPIA) said government should craft a separate law on the Extended Producer Responsibility (EPR) – which makes manufacturers and producers accountable for the management of their plastic packaging waste – instead of amending the Ecological Solid Waste Management Act of 2000 (RA 9003).
PPIA also urged the government to grant tax incentives to medium-sized companies adopting the EPR.
Danny Ngo, PPIA president, said RA 9003 is a good law but is yet to be fully tapped due to lack of funding.
Ngo said a separate EPR measure is a “more plausible option” as a safety net so as not to derail the implementation of the entire law.
“Though (EPR) adoption may not severely affect the capability of multinational companies, particularly those which have already adopted and implemented some EPR models, EPR will have a great impact on almost all of the affected medium-sized enterprises,” Ngo added.
The PPIA tax perks will help offset the additional cost of adopting the EPR.
Ngo said the success of the EPR would require cooperation among industry, government, civil society and consumers.
Ngo added the participation of the informal waste sector is a vital component in the EPR, referring to waste pickers, junk shops and recyclers.
Ngo also called on the need to allow the use of waste-to-energy facilities for the disposal of non-economically recyclable wastes or non-recyclables due to consumer mishandling.
“We in the plastics manufacturing industry are strongly advocating for the circular economy… not only (to solve) the plastic waste problem in the country but also (to) perk up the local economy with a potential estimated P100 billion revenue as estimated by the World Bank in their study conducted last year,” Ngo said.
Under the EPR amendment, large enterprises or those whose total assets exceeding P100 million found to be violating the new law may be fined for a fine of not less than P5 million and not more than P10 million for first offense; P10 to P15 million for second offense; and P15 to P20 million and automatic revocation of business permit for the third offense.
Medium enterprises or those whose total assets are from P50 million to less than P100 million, found to be violating the new law may be fined for a fine of not less than P1 million and not more than P2 million for first offense; P2 to P3 million for second offense; and P3 to P5 million and automatic revocation of business permit for the third offense.
