The tax introduced on carrier bags has led to accusations that it is a stealth tax.
Retailers now charge customers five pence for each carrier bag they supply with the Welsh government announcing that none of the charge will find its way to government coffers. Instead the money raised is to go to good causes such as environmental initiatives.
However, the Welsh government has confirmed that the charge is subject to 20% VATmeaning every carrier bag sold directly benefits the treasury. At times of economic uncertainty, retailers and consumers will be baffled at the introduction of this tax and express scepticism as to the good causes it is meant to benefit.
Small businesses lobbied against the tax and the Welsh government conceded that retailers employing fewer than 10 staff are exempt from the tax. This is a welcome concession to small businesses who can do without another tax adding to their costs.
Not all items are subject to the charge and unwrapped foods such as loose fruit and vegetables and pick and mix sweets avoid the tax. Pet shops will be pleased that live aquatic water creatures are exempt as well as loose bulbs and seeds.
Groups such as Keep Wales Tidy and Waste Awareness Wales are keen on the levy and see it as putting Wales at the forefront of environmental issues.
Fines will be levied on businesses caught flouting the law although there is an initial honeymoon period to enable retailers to comply with the changes.