Kerala Budget: Surcharge on plastic bottles

Plastic bottlesThiruvananthapuram: Kerala Chief Minister Oommen Chandy proposed a five per cent surcharge on plastic bottles in the Budget for 2016-17 presented to the Assembly today.

The surcharge is proposed as part of efforts at climate protection and reducing carbon footprint in the State. A 20 per cent tax is proposed on non-woven polypropylene plastic bags, which are spreading on the guise of cloth bags, and other types of plastic bags.

The Chief Minister said that the surcharge collected on plastic bottles will be used for measures to promote no-plastic initiatives; promote alternatives to plastic; awareness creation against plastic; collection, processing and recycling of the plastic; management of e-waste etc.

“It is estimated that Rs.10 crore will be collected through this measure and used for the above purposes, to make Kerala more livable and healthy for our future generations.”

The tax on plastic bags and bottles are the only tax proposals in the pre-election Budget.