Dunnes loses €36m plastic bag levy case
The company’s appeal to the Revenue Appeals Commissioners against the tax assessments had been put on hold pending the outcome of its High Court action.
Mr Justice John Hedigan yesterday dismissed Dunnes’ claim that plastic bags used in its stores for wrapping fish, meat and other products do not fall within the scope of the levy.
Rejecting arguments the levy was intended only to apply to plastic carrier bags supplied at checkouts, he said the point of the law was “to reduce as much as possible the presence of discarded plastic bags littering our towns and countryside”. It was “most improbable” the legislature would exempt plastic bags supplied anywhere apart from point of sale, he added.
The levy was applicable to all plastic bags provided at supermarkets, shops and service stations except for bags that fall within exemptions provided for in the legislation, he ruled. The relevant regulations exempt plastic bags of a particular size — 250mm wide by 345mm deep by 450mm long — that are used solely to contain fresh fish, meat, poultry, fruit, nuts, vegetables, dairy products or cooked food.
The state had argued the disputed “pinch and pull” bags used by Dunnes were suitable for use at point of sale and presented litter and waste problems when available free in large quantities. It was claimed the bags were robust enough to carry an extensive range of goods.
The case arose after Dunnes Stores received tax assessments totalling some €36.4m relating to four years from July 2004 to June 2008. The Revenue complained the levies due for plastic bags had not been collected.
The company did not accept the assessments and brought proceedings against the Revenue, Minister for the Environment and Local Government, and the state.
The case has been adjourned for a week to allow the sides consider the judgment.
