15:54 11.07.2017

Sector, business associations criticize initiative to introduce packaging tax

KYIV. July 11 (Interfax-Ukraine) – The American Chamber of Commerce in Ukraine, the European Business Association, the Ukrainian Agrarian Council and several sector associations have criticized bills proposing the introduction of packaging tax and the environmental tariff for solid waste incineration.

"This week the agenda [of the Verkhovna Rada] includes a package of bills, the main idea of which is the introduction of packaging tax. In fact, this is double taxation… the funds from which are to be sent to recycling. The bills do not set any requirements for recycling and disposal," Policy Officer for Food and Beverage Issues at the American Chamber of Commerce in Ukraine Yulia Stelmakh said at a press conference at Interfax-Ukraine.

She said that the above-mentioned bills propose an alternative to paying the tax – the extended liability organization.

"Could the extended liability organization function in line with these bills? The bank guarantee of EUR 1 million, not every economic entity can afford it, and the commitment to 100% recycling is introduced," she said.

According to the UkrPapir association, the introduction of packaging tax would result in growth of the cost of products by 10-15%.

The American Chamber of Commerce in Ukraine said that they several times raised the issue of the adoption of the national strategy for waste treatment where the basic European principles of separate waste collection, extended liability, waste treatment hierarchy and drawing up a bill on waste as soon as possible.

The American Chamber of Commerce in Ukraine, European Business Association, Ukrainian Agrarian Council, Union of Dairy Enterprises, UkrPapir association and Ukrvtorma Ukrainian Industrial and Environmental Association have called on the initiators of bills Nos. 4835-4838 and No. 6602 to scrap them.

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