As Hong Kong moves towards the second phase of the shopping bag levy, the government is now thinking of expanding the plan to cover small retailers. But unlike in phase one where supermarkets, convenience stores and beauty care shops are required to hand over the levy to the government, smaller retailers like news stand vendors can now keep the money and be spared from keeping records of sales of shopping bags, according to Secretary of Environment Edward Yau in time for the first anniversary of the shopping bag scheme.

The first phase covers about 3,000 supermarkets like ParknShop, Wellcome and Jusco as well as beauty specialty shops like Watsons and Mannings. The scheme asks these shops to charge HK$0.50 (US$0.06)  for each plastic bag and turns over the money to the government.  In addition to the added tasks put on their shoulders, these shops also need to keep records on the procurement and distribution of plastic bags for filing with the Environmental Protection Department.

After the introduction of the 50 cent levy, the number of plastic bags distributed by shops was reduced by 90 per cent. That sounds promising indeed and in line with government measures to reduce the use of plastic bags and prolong the life span of landfills. But the move also spurred the use of so-called “biodegradable” plastic bags, used more extensively to avoid paying the levy.

Since the levy is not a means to make the government money, it should be a non-issue to adopt the new proposal allowing small retailers to charge customers for bags they distribute. After all, the government may not be subsidizing the procurement of these bags.