Table of Contents
Reviewed and updated by ICD - Week 43/2026
Yes: plastic bags made from single-layer PE film (HDPE, LDPE or LLDPE) are subject to the environmental protection tax, at VND 50,000 per kg, but not every bag is taxed. Three groups are not taxed: pre-packed goods packaging, certified environmentally friendly plastic bags, and exports under specific conditions. Roll film that has not been converted into bags also falls outside the definition of a taxable bag. This article summarises Resolution 579/2018/UBTVQH14 and Circular 159/2012/TT-BTC; a business should check its own case against the current documents or ask the tax authority.
1. Which bags are taxable
Under Circular 159/2012/TT-BTC, a taxable plastic bag is a thin plastic bag or packaging in bag form, meaning it has a mouth, a bottom and sides and can hold a product, made from single-layer HDPE, LDPE or LLDPE film. The tax is calculated on the weight of the bag at the production or import stage: the producer or importer declares and pays it (Law on Environmental Protection Tax), and it is then added to the selling price. The current rate for plastic bags is VND 50,000 per kg under the tax schedule issued with Resolution 579/2018/UBTVQH14.
Multi-layer bags laminated from single-layer PE film with another film such as PP, PA or aluminium, or with paper, are taxed in proportion to the percentage by weight of single-layer HDPE, LDPE or LLDPE film in the bag, under Article 3 of Circular 159. The example in the document: 100 kg of multi-layer bags containing 70% single-layer PE film is taxed on 70 kg.
2. Cases that are not taxed
| Case | Main condition | Note |
|---|---|---|
| Pre-packed goods packaging | Packaging used to pack products that the business itself makes, processes, buys in for packing, or packs as a service; this includes packaging bought directly from the producer or imported for packing | A commitment, a contract and the note “not subject to environmental protection tax” on the invoice are required; if it is used for another purpose (sold, given away, internal consumption), tax must be paid |
| Environmentally friendly plastic bags | Holds a certificate issued by the competent authority of the Ministry of Natural Resources and Environment | Exempt only from the date the certificate is issued |
| Exports | A producer that exports directly or through an export agent: customs does not charge tax on imported materials and supplies used for processing for export | If taxable goods are sold to a buyer who then exports them, the producer must still pay the tax when it sells |
A point that is often misunderstood: a bag used to hold goods at the point of sale, such as a supermarket bag handed to a customer, is not pre-packed goods packaging, so it is still taxed. A bag that a business uses to pack its own product is exempt, with papers to show the purpose of use.
3. Pallet stretch wrap and PE film rolls
Pallet stretch wrap and PE film in roll form have no bag mouth, bottom or sides, so they fall outside the definition of a taxable plastic bag above; they are packaging material that protects goods in transit. Only when a roll of film is converted into bags may the finished bags fall under the tax, and the bag producer is then the party that declares it. The reason is the shape of the product, not that pallet wrap counts as pre-packed goods packaging, as some sources state.
4. Who pays this tax
Legally, the taxpayer is the producer or the importer. Economically, the tax is added to the selling price, so the final buyer bears part of the cost. One way to reduce the impact while staying within the law is to buy the right product: if you need film to wrap goods, use roll film; if you need bags to pack a product, keep the papers that show it is pre-packed goods packaging.
Frequently asked questions
Are PE bags subject to environmental protection tax?
Yes, if they are plastic bags made from single-layer HDPE, LDPE or LLDPE film in bag form: VND 50,000 per kg under Resolution 579/2018/UBTVQH14. Pre-packed goods packaging and certified environmentally friendly bags are not taxed.
When is a PE bag exempt from environmental tax?
Pre-packed goods packaging under Circular 159/2012/TT-BTC, certified environmentally friendly plastic bags, and exports under the conditions for direct or entrusted export.
Is PE pallet wrap subject to environmental tax?
No. It is not a bag, so it falls outside the definition of a taxable plastic bag. Pallet wrap rolls are packaging material that protects goods and have no bag mouth, bottom or sides.
Who pays the environmental tax on plastic bags?
The bag producer or importer declares and pays it. The tax is usually added to the selling price, so the buyer bears the cost indirectly.
How are multi-layer bags taxed?
In proportion to the percentage by weight of single-layer HDPE, LDPE or LLDPE film in the bag, under Article 3 of Circular 159/2012/TT-BTC.
Contact ICD Vietnam for advice
ICD Vietnam Industrial Manufacturing Co., Ltd.
North: 3rd Floor, Thang Long A1 Building, Bau Hamlet, Thien Loc Commune, Hanoi, 0983 797 186 / 090 345 9186 / 090 5859 186
South: 551/212 Le Van Khuong Street, Tan Thoi Hiep Ward, District 12, Ho Chi Minh City, 098 6784 186
Email: sales@icdvietnam.com.vn
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References
- Law on Environmental Protection Tax 2010 (No. 57/2010/QH12) - vanban.chinhphu.vn
- Circular 159/2012/TT-BTC (Article 1: definition of taxable plastic bags and pre-packed goods packaging; Article 2: exports; Article 3: multi-layer bags) - chinhphu.vn
- Resolution 579/2018/UBTVQH14 on the Environmental Protection Tax Schedule (taxable plastic bags VND 50,000/kg) - luatvietnam.vn
