What really happens to the money you pay for plastic bags at supermarkets

Nearly R2 billion has been raised through the levy on plastic supermarket bags, but only about half of that money has been allocated to recycling, according to Caxton Central.

Fourteen years ago, South Africans started paying for plastic bags to develop the recycling sector.

The levy is applied to the manufacturers of the plastic bags, but is passed on to consumers who pay 60c or more for the bags at tills.

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The levy was introduced in 2004 with a minimum limit on the thickness of the bags to aid recycling and promote reuse, in terms of an agreement between the departments of environmental affairs and labour and businesses.

The original intention was to encourage shoppers to use fewer bags, thereby reducing plastic pollution.

The money raised was to be used to develop the recycling industry and to create jobs. A section 21 company, Buyisa-e-Bag, was established for this purpose.

It is nearly 15 years later, and about R1.8 billion has been raised by means of the plastic bag levy. Of this amount only R919.6 million has been allocated to recycling projects.

National Treasury said in response to questions from BusinessLive that funding raised from the levy was not ring-fenced for the recycling industry, as this strategy was no longer considered best practice. The plastic bag levy money was channelled into the National Revenue Fund and allocated to government departments.

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