Malaysia to levy heavy tax on Plastic Scrap import
KUALA LUMPUR (Scrap Register): Starting from Oct.23 Malaysia will implement huge tax on import of scrap Plastic. The tax will be approximately equivalent to $3.65 per metric ton, which will be tacked on to plastic imports instead of the current model of Malaysian processors importing the materials for free.
The government will also tightening requirements for Malaysian processors to obtain operating permits from Malaysian Investment Development Authority (MIDA) . The government will collect the names of all companies importing and exporting plastics to check the businesses.
MIDA will check with the customs authority to determine the ports' capacity to receive new material before issuing operating permits.
Malaysian governments are worried not only with capacity issues but also with the environment because they have received more reports of serious pollution from processing facilities, most notably illegal operations that have popped up to handle the surplus. Many of these operations reportedly employee unsafe processing practices and dump or burn materials they cannot handle.
Malaysia and some Southeast Asian countries are littered with stockpiled scrap with the influx of plastic scrap from around the world since China implemented tighter scrap regulations and material bans.