Embracing Accountability: How the Extended Producer Responsibility (EPR) Law Transforms Plastic Waste Management for Sustainable Growth

The Urgent Need for Responsible Plastic Use

*Marine debris end up at the breakwater near the Manila Yacht Club while overlaying of dolomite continues on the other end of the shore as part of DENR’s Manila Bay rehabilitation project.*

Plastic waste’s environmental toll has become a global concern, with governments worldwide pressing for urgent, sustainable solutions. In the Philippines, Republic Act No. 11898, also known as the “Extended Producer Responsibility Act of 2022,” directly addresses this issue by amending the Ecological Solid Waste Management Act of 2000. This landmark law shifts the burden of plastic waste management onto large enterprises*, requiring them to take responsibility* for the entire lifecycle of their plastic products — from production to disposal —making it clear that sustainable plastic use is no longer optional.

Compliance and Accountability in Plastic Waste Management

The EPR law mandates comprehensive programs that reduce, recover, and recycle plastic waste. Companies must register with the National Solid Waste Management Commission (NSWMC) and develop specific EPR programs, including recovery mechanisms such as buy-back schemes for plastic packaging. Each registered enterprise must meet annual recovery targets, increasing incrementally to an 80% recovery rate by 2028. Companies must also keep accurate records and submit annual compliance reports, which are independently audited. Fiscal compliance provisions allow enterprises to deduct allowable EPR expenses and receive incentives under the National Internal Revenue Code of 1997. Non-compliance brings steep fines, underscoring the law’s impact as both a regulatory requirement and a call to environmental leadership.

Beyond Compliance: The Competitive Edge of EPR

Adhering to the EPR law does more than fulfill legal obligations—it enhances a company’s market position and brand reputation as a responsible industry leader. This commitment to sustainability comes with concrete benefits, such as tax deductions, fiscal incentives, and public recognition for innovative waste reduction efforts. By staying ahead of evolving industry standards, companies’ future-proof themselves, positioning as pioneers in a market that increasingly values environmental responsibility and sustainability.

Practicality, Urgency, and Value for Clients

At UHY M.L. Aguirre & Co., CPAs, we see the EPR law as a game-changer, providing structured goals that not only address a critical environmental issue but also foster a culture of corporate sustainability. By embracing the EPR framework, businesses align growth with responsibility, reduce environmental impacts, and gain public trust. We recognize the urgency of addressing plastic waste, and this law empowers our clients to lead in stewardship while accessing the fiscal and brand-enhancing benefits that come with responsible practices.

Partnering for a Sustainable Tomorrow

The EPR law may present challenges, but with UHY – ML Aguirre CPAs & Co., clients gain a committed partner in navigating compliance. We work closely with businesses to craft practical EPR strategies that streamline adherence, strengthen sustainability, and enhance resilience. Reach out today to explore how we can turn compliance into an asset, empowering your journey toward environmental leadership and sustainable success.

Let us Guide you Through these Changes!

Babylon2k helps these businesses adapt to new laws, making them compliant regarding tax filing and adapting to new regulations. Utilizing our expertise in accounting and tax ensures that your business remains compliant while minimizing disruption to your operations.

Whether you’re a small business, a growing startup, or a company reliant on digital platforms, Babylon2k provides tailored solutions to meet your business’s needs. Each service is designed to simplify the tax process for you. Each service has a corresponding code (e.g., 110010, 110040), and the following services under tax:

GG0140 – TAX COMPLIANCE REVIEW
GG0150 – TAX ADVISORY SERVICES
GG0160 – TAX PLANNING

Additionally, Babylon2k’s B.E.T.H. can help you when you need more information and clarification on how this law affects your business.

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Let us guide you through these changes! When you’re ready to start, simply sign in or request a quote and enter the relevant service code(s) to ensure we can connect you with the perfect Babylon2k specialist.