Tax ‘Kaveera’ Bags

Aug 22, 2002

THE UNDP has given a grant of $37,000 for a pilot project in Kawempe for recycling kaveera. The project will turn biodegradable waste into compost and send separated kaveera to a plastics factory for recycling.

THE UNDP has given a grant of $37,000 for a pilot project in Kawempe for recycling kaveera. The project will turn biodegradable waste into compost and send separated kaveera to a plastics factory for recycling.Meanwhile government is considering a wholesale ban on kaveera or polythene bags.Polythene bags are a nuisance not only in Uganda but worldwide. They mess up agriculture and livestock and make unsightly litter in both town and country.However neither recycling nor an outright ban provides an effective solution to the problem.Polythene bags are just too cheap and convenient. People buy something in a kaveera and immediately throw it away.Several countries globally have now started heavily taxing polythene bags with dramatic success. It has created a win-win situation of encouraging people to be more careful in their use of polythene bags while simultaneously increasing tax revenue.This would be an excellent option in Uganda. If the manufacturer of kaveera had to pay a tax of, say, sh100 per bag, this would then be passed on to the consumer. The consumer would then want to retain the bag for further use since he or she had paid for it.Furthermore the consumer might also look for a more durable bag for shopping to avoid paying the sh100 altogether. Alternatively manufacturers of plastic bags might provide higher quality kaveera that last longer and so cause less pollution.A total ban on kaveera would probably be counter-productive and unenforceable. But a tax on polythene bags would encourage both retailers and shoppers to be more judicious in their use of kaveera. This would protect the environment and increase tax revenue.Ends

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