Trade Associations want moratorium on bag tax

The Central Government is aiming to reduce the use of non-biodegradable plastic bags in supermarkets by 50% by 2015, and while some regions have forged agreements to achieve this aim, Andalucia is the only region so far to opt to boost their coffers by introducing a tax.

The new tax of €0.05 per bag in 2011 and €0.10 in 2012 is scheduled to come into effect ‘with vigour’ in January 2011.

However, the Trade Associations in Andalucia are now asking for a six month moratorium on the tax to allow business, particularly the small supermarkets, to adapt their software and billing systems.

The Trade Associations would also prefer to arrange some sort of deal, as has happened in other regions, rather than the implementation of a tax. The tax is expected to cost businesses in Andalucia around €35 million to implement.

An extra tax during an economic crisis at potentially one of the busiest times of year, the run-up to Three Kings, is not viewed as being beneficial to traders who are already struggling.

The bag tax is just one of a number of measures approved by the Junta de Andalucia to try and reduce its budget deficit, others being an increase in income tax, increase in tax on banks and an increase in the tax on petrol.

All these increases will, quite naturally, only really affect the consumer as they are the only ones who cannot pass on the extra costs.

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