Taxes to be levied on gum and bank machine receipts

The Minister for the Environment, Mr Cullen, has confirmed he intends to levy special taxes on chewing gum and bank machine receipts…

The Minister for the Environment, Mr Cullen, has confirmed he intends to levy special taxes on chewing gum and bank machine receipts to pay the cost of cleaning them from streets.

In addition, he has pledged to "eradicate" polystyrene boxing of fast-food products.

Mr Cullen said a tax would be placed on such packaging if fast-food producers did not agree to stop using it.

The move is an attempt to replicate the success of the plastic bag levy which has seen a significant decrease in the use of bags since a 15 cent charge was introduced.

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It is based on the polluter-pays principal, whereby those responsible for the creation of the litter would pay for its removal through levies.

"We have got to change our ways. The polluter must pay," said Mr Cullen.

The littering of chewing gum on streets was unsightly and unacceptable, he said.

"Vast amounts of taxpayers' money every year pays for the clean-up of chewing gum; money we could be using elsewhere.

"I believe that those who use chewing gum should pay for its clean up. The money raised will be used to pay for clean-ups, thus freeing valuable resources."

Mr Cullen's spokesman said it was too early to say how much tax would be levied on chewing gum, but said it would be between five cent and 10 cent per packet.

At such a rate, the Government would raise €4-€8 million through the tax.

The spokesman said that the Minister would bring a proposal to the Cabinet in the autumn with the aim of introducing the new tax before the end of the year.

With some 80 million packets of chewing gum sold every year, Mr Cullen said that 500 tonnes of gum were disposed on streets annually.

It is estimated that the annual cleaning bill on local authorities is €8 million.

The Wrigley company said it was disappointed by the proposed levy. "A levy does not encourage a change in behaviour which could eventually eliminate the litter problem."

The company advocated education combined with the enforcement of litter fines to tackle the problem.

A spokesman for the Revenue said that discussions with Mr Cullen's Department were at a very early stage only. "We haven't got into the detail of the collection mechanism."

On his plans to tax receipts from bank automatic teller machines (ATMs), Mr Cullen's spokesman said that details would be finalised in the autumn.

He believed bank customers would be given an option to take a receipt, with payment of a tax, or avoid taking one.

Mr Cullen's spokesman said the Minister would consult with fast-food producers to eradicate the use polystyrene, which can remain intact for thousands of years after disposal.

"If we can't find a solution we'll use a levy to weed it out."

Arthur Beesley

Arthur Beesley

Arthur Beesley is Current Affairs Editor of The Irish Times