Ukrainian packaging producers and importers asking cabinet to prevent introduction of fee for packaging recycling

Kyiv, November 29 (Interfax-Ukraine) - Ukrainian goods and packaging producers and importers have appealed to the government, asking that it prevent the introduction of a fee for the development of solid household waste recycling, as foreseen in draft law No. 11402.

"On behalf of all producers, we are asking the government in this difficult economic situation, businesses are experiencing, to introduce a moratorium on the imposition of any taxes or charges," Chairman of the Ukrainian Packing and Environmental Coalition Volodymyr Slaby said at a press conference at Interfax-Ukraine in Kyiv on Thursday.

According to him, now in Ukraine government decree No. 915 of June 26, 2001 is valid, which demands manufacturers pay fees for the collection, storage and recycling of used packaging and packaging materials to state enterprise Ukrecoresursy.

"They [Ukrecoresursy] have been receiving significant funds for over 12 years and producers are not provided with any recycling services: they are forced to sign contracts with other specialized organizations," he said.

Slaby also noted that if the double tax foreseen in the bill is adopted (on the one hand, the tax payers are packaging producers and importers, and on the other hand, the producers and importers of packaged goods), businesses will be forced to pay several times for the same service. This, in turn, will lead to an increase in the cost of many groups of packaged goods, especially food, and, as a consequence, a reduction in the demand for the goods, their production and revenues to the budget, the expert said.

In addition, Slaby drew attention to a lack of justification of rates for various types of packaging, which, in his opinion, could be used to discriminate against certain materials.

Director of the League of Food Producers Hennadiy Kuznetsov said at the press conference that the introduction of the fee would resolve the problem of waste recycling.

According to him, the organization of separate waste collection is more efficient than the initiative of the bill author to build incineration plants.

Kuznetsov reported that the introduction of the fee would mainly affect the producers of combined packaging and goods in such packs. According to him, this type of material is used by the producers of juice, ketchup, mayonnaise and other liquid and pasty products.

Ukrpapir Executive Director Eduard Lytvak said that another drawback of the bill is a lack of a transparent system for the use of the taxes collected.

In his view, most manufacturers without introducing additional charges are forced to abandon costly packaging.

"We're going back to the 1940-1950s, when products were sold without packaging," he said.