Hipster Duck
Senior Member
Whatever, semantics.
No. Not semantics. Here is my explanation in another thread about the difference between user fees and taxes.
And even under the strictest of definitions, this isn't a tax because the money is not going to the government.
At the end of a day or week the merchant counts the contents of the container, divides by 5 and has the number of bags sold, pretty simple.
Since there is no paper trail left by the customer, what is preventing the merchant from cheating and pocketing the money himself? How many people will need to be hired at City Hall to audit the claims from the 50,000+ merchants in Toronto that will be sending in their receipts and checks? We're talking about chump change here.
The same manufacturer offers a larger than usual bag for less than $0.01 each, I'll bet the big stores do MUCH better than that.
I checked around and can't find the link. Maybe you can provide it.
To me it seems highly unrealistic for a merchant to buy plastic bags at your originally quoted price of 0.5 cents/bag. Think about it: above and beyond extracting and processing the raw materials, a manufacturing plant has to churn out bags, which then have to be shipped to a port, then into a container, travel across the ocean, trucked to a logistics warehouse, redistributed to another seller, then the merchant has to order the plastic bags which are then shipped in a delivery truck to his store. Under your calculations 10,000 bags should cost $50, but it would also weigh 50 kg and probably take up more than a cubic meter of space in a truck. The economics don't seem sound.
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