Charges on paper and plastic bags have been around for a few years now, and the implementation has had varying degrees of success around the world. In the UK, government plans extended the jurisdiction of the charge to businesses with 250 employees or fewer, this means more businesses will need to consider how they spend money that is received from paper bags; but where is the money spent on the paper bag charge currently?

1. The proceeds of the charge are expected to go to ‘good causes’

The charge on single-use paper and plastic bags was introduced in part to try and influence the public to stop buying them and move onto greener and reusable alternatives. To a large extent, this has been successful however the money raised through the continued use of paper bags is expected to go towards ‘good causes’.

One company that has pledged to put the money to good use is Fred Meyer, the ‘Hypermarket store’ has stated that the money it raises from the paper bag charge will go towards initiatives such as a ‘waste prevention too’ in addition to wider sustainable packaging and sustainable vendor delivery schemes.

• Deductions can be made to account for the cost of the paper bag

Whilst some business have directed funding from the bags to ethical ventures aimed at planting trees and forest preservation, many jurisdictions allow retailers to use the charge to cover the cost of the bag. However, in many cases, the charge does supplement the total cost of the bags. Not having the charge could cost your business more in the long run. In the UK a £20,000 always companies found to not be implementing the charge.

Are paper bags a worthwhile investment for my business?

When it comes to doing the best for your business, it is important to read the market and react accordingly. Paper bags are becoming increasingly popular around the world and are often seen as a more ‘high quality’ product than their plastic counterparts. If you are a retail business that has introduced a charge on paper bags, going through a high-quality supplier will be a good way to ensure your customers get the best value for money.