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 taxincentives for companies and consumers to reduce plastic waste, especiallythose targeted at research and development (R&D) in the private sector.

Tarmizi Anuwar, the Malaysianrepresentative of the Washington-based Consumer Choice Centre, said thatemphasis on this sector’s R&D can lead to the production of cheapersustainable alternatives.

According to him, incentives do notnecessarily 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 becomplemented by reduced trade barriers for the import of alternatives as wellas reduced bureaucracy, streamlining patent processes for sustainable products.

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

Despite these measures, Malaysia rankedthird globally for annual ocean plastic waste, as revealed by a 2021 study inthe Science Advances scientific journal.

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

VNA