Ecology, Estonia, Financial Services, Retail, Taxation

Sester does not agree with the Environment Ministry's proposal to ban free plastic bags in stores from July 2017 and set a minimum price on such bags, it appears from the Finance Ministry's letter.

According to the finance minister, a minimum price would constitute an excessive intervention in market competition and the profit generated by it would be extra income for entrepreneurs, although it could instead flow into state coffers in tax. In view of that, the minister finds that a plastic bag tax would be the most efficient and a less burdening solution.

Sester also proposes to apply a tax in the case of ultra thin plastic bags whose handout for free the Environment Ministry wants to prohibit.

The Finance Ministry is preparing to start work on a new Packaging Excise Duty Act. Because of that, measures to reduce the use of plastic carrier bags could be combined with the new law instead of the proposed ban and minimum price, Sester says.

The Environment Ministry launched at the end of the summer a bill to ban free ultra thin plastic bags in stores from July 2017 and set a minimum price ranging from 30 cents to 1 euro apiece on plastic carrier bags. Stores currently charge an average 15 cents for such bags.