The GRTU has complained that the issuing of government refunds to retailers for plastic bags bought before new rules were introduced, has stagnated.

In the 2009 pre-budget document , the government said that it “intends to revise its policy on plastic bags. Various options are considered to reduce the need for plastic bags... Either, for the bags to be sold across the counter; or for the government to impose a ban on the use of plastic bags other than those that were made from either degradable or a biodegradable material.

Following the budget and talks with the GRTU, it was agreed that retailers would be paid for the stock they still had, and the bags would be disposed of. Then, following a claim for refund, the VAT department would analyse the claims and the Ministry for Resources would issue the refunds.

This claim mechanism started some 17 months ago and the first refunds were issued just before last Christmas, eight months after the first claims were made.

The process had now stagnated, the GRTU said. 88 claims are still pending and retailers were growing impatient, it added.

The GRTU has written to the Commissioner for VAT and the Permanent Secretary at the Ministry of
Finance in an attempt to unblock the issue. It intends to take further steps in the coming days.