Malaysia: consumer group suggests tax incentives to reduce plastic waste

The Malaysian Government plans to raise the tax rate from 6% to 8% across an array of taxable services in March.

Illustrative image (Photo: Bernama)

Kuala Lumpur (VNA) - A consumer group in Malaysia has proposed tax incentives for companies and consumers to reduce plastic waste, especially those targeted at research and development (R&D) in the private sector.

Tarmizi Anuwar, the Malaysian representative of the Washington-based Consumer Choice Centre, said that emphasis on this sector’s R&D can lead to the production of cheaper sustainable alternatives.

According to him, incentives do not necessarily mean grants. If a company or the private sector invests in R&D, the government should give tax exemptions or at least reduce taxes for them.

Tarmizi said these measures should be complemented by reduced trade barriers for the import of alternatives as well as reduced bureaucracy, streamlining patent processes for sustainable products.

Current initiatives to combat plastic waste in the country include a ban on drinking straws in the Federal Territories and Selangor, as well as charges for plastic bags in states like Penang, Selangor, and Johor.

Despite these measures, Malaysia ranked third globally for annual ocean plastic waste, as revealed by a 2021 study in the Science Advances scientific journal.

Last year, the government announced a plan to eliminate single-use plastics from the retail and business sector by 2025./.

VNA