What is plastic levy?

This is a monetary charge attached to plastic shopping bags with thickness 35 microns and above. LEGAL NOTICE NO. 88 OF 2022: Environment (Plastic Levy) Regulations, 2022: Pursuant to section 113 of the Environment Act, 2008 1 , I,

Note that plastic levy is a form of tax and therefore there is no VAT charged on the plastic levy.

What type of plastic is chargeable for levy?

Plastic shopping bags 35 microns or less are subject to a levy.

Exemptions:

• Plastic barrier bags for health and hygiene
• Primary packaging plastics in direct contact with products
• Other exemptions as declared by the Minister

Prohibitions:

• Bags less than 35 microns thick
• Flimsy, non-recyclable plastics, including:
  • Bags 25–35 microns thick
  • Plastics like polyethylene, polypropylene, PVC, and nylon
  • Any other type banned by the Minister

Who is eligible to charge plastic levy?

Every manufacturer, wholesaler, retailer or business that intends to provide plastic shopping bags must register under the Environment (Plastic Levy) Regulations 2022. Registration provides the requisite permit. It is only once registered that the manufacturer, wholesaler, retailer or business can then be able to supply or distribute plastic shopping bags at a charge to customers at the point of sale.

Note that the Commissioner General of Revenue Services Lesotho (RSL) will, by default, register all those who have been issued with a permit by the DDE. The RSL will then use its register to follow up on all levy compliance related issues.

What are requirements for importation of plastic bags?

On importation, the importer or supplier of plastic bags shall produce the permit granted by the DDE, which permit is an authorisation to deal with plastic bags. It must be noted that NO plastic levy is payable by the importer or supplier at the point of importation or entry into Lesotho.

How to register for plastic levy?

Manufacturers and suppliers of plastic shopping bags must register with the Department of Environment and obtain a permit before supplying bags or charging the plastic levy. Once permitted, RSL automatically registers them and issues a plastic levy number.

What is the applicable rate of plastic levy?

Plastic levy of ninety Lisente (90 cents/M0.90) shall be charged to a customer who wishes to be provided with a plastic bag at the point of sale. Note that plastic levy is a form of tax and therefore there is no VAT charged on the plastic levy. The 90 Lisente is payable on each plastic bag supplied to the customer.

When to file plastic levy return and pay levy due?

Plastic levy returns and payments are due on or before the 20th following the month in which the plastic levy was charged and collected from the customer.